The old easy model (for pricing a house) is to look at the computer to see what sold last year, and add 5 percent. That model doesn’t work now.
You have to look at what is actually selling in your price range right now. This determines the market. The period of time to look back at now (sales prices of comparable properties, or comps) is 90 days. Anything over three months is not a good comp now.
A home is worth only as much as some one will pay you for it. Today.
The market is going to determine what a home is worth. It’s just that you may not like what the market says.
- S. Baird, President of Baird & Warner Real Estate -