The Seller wants to list the home for the $714, 000 he paid for it in 2007. The tax value is $ $519,000. Zillow says $554,562. Trulia says $535,000. NARRPR says $567,680 with a range from $510,912 to $624,448. The Federal Housing Finance Agency says a home purchased for $714,000 in August 2007 should be worth $624,589.
Well we can get an appraisal. But these days the appraisal includes the sale of foreclosures, short sales, REOs and the inventory of homes currently for sale in the neighborhood. So much for the Appraiser.
The Realtor does all the work required and comes up with $639,000 listing price.
Who is correct? I am going with the Realtor because the Realtor is the only one who actually stands to lose in the pricing game. The seller can just keep the house, Zillow and Trulia are just using their site to attract buyers they can sell back to another Realtor and the Federal Agency is just going with stats.
If the Realtor prices the home too low, he/she is subject to the wrath of the seller and the Real Estate Commission. Woe be to the Realtor!
If the Realtor prices it too high, then a lot, time and effort and money will have been wasted when it does not sale. Additionally, the relationship with the seller and the reputation with all the seller’s friends and family will suffer. Even if it sells after the price is lowered, the damage has been done.
So, the Realtor has to get it right, every time. Go with the Realtor.