Pricing Your Home

^^ Watch The Full Video with all 6 Steps to Pricing Your Home ^ ^

Rule #1: Well Priced Homes Sell at Maximum Value

Rule #2: Don’t Forget Rule #1

Website Estimates mislead buyers & sellers

On a sample home in Vienna, Virginia here are the website estimates:

• Realtor Property Resource: $1.1M
• Home Snap: $1.104M
• Trulia: $905,000
• Zillow: $919,000

Estimates/Zestimates are national algorythms that can vary 20% or more on a single property.

This is a huge contributing factor why sellers and Realtors over price homes.

Tax assessors are a consistent source in determining the value of a home

Tax assessors give us a “ballpark” price of a home. Historically homes within a one mile radius with similar age and size will sell at a consistent percentage of assessment i.e. 108% – 110% of assessed value. There are other mitigating factors that must be considered, however, when determining the value of a home.

Casey Samson’s pricing model has a proven track record of putting an accurate value on home as evidence by his portfolio of selling at 100.1% of list price.

There are 6 steps to Pricing

Step One – Establish The Proper Criteria

Proper Comparables are based on age, type of home, size and similar features. Credibility is given to same neighborhood, same street. In other words this is where we compare apples to apples.

Step Two – Compare 

• Price per square feet (PPSF)
• % of assessment

Step Three – Adjust

• Size
• Lot
• Upgrades
• Condition

The model includes:

• Range of Percentages based on sale price vs county assessment 
• Range of Price per sq ft (PPSF)
• Produce “The Index which is a combination of the two numbers

Step Four – Confirm PPSF using growth charts.
Growth charts show 10 year pricing cycle. 

Growth Charts also confirm the history of the PPSF.

Step Five – Evaluate Market Conditions.

• How many active competitors do you have?
• How many competitors are under contract?
• Home many competitors sold in the last 120 days?
• What is the average days on market for this neighborhood?
• What is the average price of homes within one mile?
• What type of leverage does the seller have?

Answering these questions determines the buyers or sellers market and dictates leverage.

Step Six – Apply Thresholds
Step Six – Apply Thresholds

Buyers search for homes based on a minimum and maximum price. Example searches:

Buyers search $750,000-$800,000 so you would not list a home at $810,000. You would list at $799,000 to compete against an weaker price group.

Buyer search $500,000-$550,000 so you would not list at $555,000. You would list at $550,000

Our goal is to produce multiple contracts which allows our sellers maximum leverage in negotiating contracts and inspection releases.

When sellers are presented with the facts it allows them to make educated decisions that will save them money.

If you need help determining value, Fill out the form below.

Casey