determining listing price, hypothetically

hey all, I’ve got no plans to sell, but I’m curious how I would arrive at a listing price if I were to do so. As we all know, Zillow is notoriously inaccurate in Brooklyn, and because of low comparable inventory and sales volume, pricing via comps and asks seems a bit dodgy as well. Likewise bank appraisals, which seem to reflect more on the banks desire to lend than any market value. How do listing agents arrive at asking prices? I don’t want to waste an agent’s time since I don’t intend to sell any time soon, but I’d be curious to know what the listing price would be if I did. This is for a 3400 sf, 2 fam limestone in PLG.

berniceshola

in Real Estate - Sales 12 years and 8 months ago

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slopegirl | 12 years and 8 months ago

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the best way to see what your home is worth is to see what homes nearby are actually selling for RIGHT NOW. Prices in our boro have changed a lot in the past 12 months.. good brokers and appraisers all do this, they find comparable properties. same size, same condition, same neighborhood or as close as you can get on all fronts. takes a while to get good at this, most appraisers aren’t. of course brokers then skew their numbers based on strategy too. so you need to look at sales prices not asking prices.

Bklnite | 12 years and 8 months ago

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Your listing price would be $1,199,000 and you would sell for a million bucks. Just kidding, but to get comps you can go to dof and download the rolling sales file and look at transactions by neighborhood (FLATBUSH-LEFFERTS GARDEN), by zip, by building category (2-family), etc. From streeteasy you can often get the listing price & the sale price, for example 22 Midwood (a 1 family) was listed by corcoran for $1.5, chopped a couple of times to $1,349,900 and sold for $1.2 (or 20% off the initial ask). Bank appraisals should reflect the best estimate of market value – the bank’s interest is to avoid risk – and they’ll use comps (somewhat of a science) with adjustments (largely an art) for location, size, condition etc.. Brokers come up with a listing price based on their market knowledge and whatever strategy they have – ask really aggressive prices then chop as needed; or price it lower if they think they can drum up more interest and get multiple offers, etc.