Estimating List Price/Sales Price In Metairie

Although in most instances we are not appraisers and should not lead the public to believe that our opinions are in fact appraisals, but rather opinions of value, based on an analysis of data which we have access, to in our offices. Those of us who are professionals at what we do and are engaged full time in brokerage see many properties come on the market and we are able to observe the market reaction to them. Do they sell ? Must they be reduced ? Do they generate offers ? How do they compare with actual “Sold” comparables ( properties which have actually gone to a sale). Is the list price within reason ? How does the subject property compare with similar properties already on the market ? If it is not competitive with similar properties, which are available, it has little chance of selling. Typically what I hear from many property owners is this. “ They are asking $$$$$$$ for such and such a property and mine is better, therefore mine must be worth more.” This line of reasoning is illogical and irrational since invariably the property to which they are comparing theirs to may well be grossly overpriced and such comparisons result in invalid conclusions. In other words if you assume that a property which is overpriced when compared to yours makes yours worth even more- you are headed in the wrong direction if you truly want to sell ! Valid conclusions as to the value of one’s property should be drawn from those properties which have gone to an act of sale-not from asking ( speculative) prices of neighbors’ properties which are unsold and simply sitting on the market. Currently some owners choose to list with the highest bidder, or the agent who suggests the highest list price, irrespective of what a carefully researched analysis of the market might reveal. Those who suggest totally unrealistic list prices out of ignorance do their sellers an extreme disservice and those who suggest unrealistic list prices simply to obtain the listing are prostituting themselves ! Better to tell the truth and lose an occasional listing than to deceive a property owner into believing his or her property is worth substantially more than it is. Hurricane Katrina and a variety of related influences have led many property owners to believe that simply because their property did not flood that it has increased in value by 30-40 % over prices prior to the storm. This can not be borne out in any rational fashion, but it is difficult to dispel because property owners want desperately to believe that it is indeed factual. And there are certain uninformed , unprofessional agents who promote such poppycock in order to secure listings, no matter what ! In many instances said properties sit on the market until they expire and their disgruntled owners then realize that they were deceived either out of ignorance, a lack of integrity on the part of the agent, or both. A responsible real estate professional should tell you the truth and not necessarily what you might wish to hear. Even at the risk of losing a listing to the highest bidding agent, Larry Trunk,Inc. believes in telling property owners the truth.

The preceding article is subjective and represent the professional opinion of the author/ real estate broker, Larry Trunk