Empirical data or gut feeling? Which do you rely on the most?

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Real Estate Agent with Better Homes and Gardens Real Estate Metro Brokers

Empirical data or gut feeling? Which do you rely on the most?As a real estate professional, it is my job to know my market and to understand it. And in the course of doing my job, I have seen thousands of homes for sale.

Maybe the number is more like tens of thousands of homes for sale. Rest assured, I have been in a lot of houses that are on the market.

I do a CMA (competitive market analysis) prior to a listing appointment which provides an excellent source of empirical data that can be used to determine a range of pricing.

But the minute I walk into a house, my gut immediately takes over and my internal calculator starts the tally. I know all of the selling obstacles and what buyers are looking for in a house in that neighborhood.

And after touring the house and as we sit down to discuss the pricing particulars; I have a pretty good idea of where we need to be.

If the truth be told, I rely 75% on my experience and about 25% on the data. Blind data doesn’t “see” the house the same way that I do.

How about you? What do you rely on the most when you are pricing a home?

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  1. Lenn Harley 03/10/2012 07:30 AM
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Liz and Bill Spear
RE/MAX Elite Warren County Ohio
RE/MAX Elite 513.265.3004 www.LizTour.com

Richard, Definitely a combo, but I'm heavier on the data.  Bill

March 09, 2012 09:10 AM
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Chris Ann Cleland
Associate Broker, Northern VA
Long & Foster REALTORS®, Gainesville, VA

If I'm working in the area I live, I can go on my gut because I'm in these homes all the time.  If I head east I need to get a handle on the empirical data in order to hone that gut.

March 09, 2012 09:42 AM
Rainmaker
243,792
Bonnie Vaughan
CNE SFR - Buyers/Sellers - Lackawanna & Surroundin
Re/Max Home Team

Richard:  In my market we don't have many traditional sub-divisions.  CMA is a yard stick not a given.  I do a CMA to have the data.  Like you I use my gut when I see the house.  The CMA either goes up or down depending on the factors I view.

March 09, 2012 12:25 PM
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Bryan Robertson
Innovator, Writer, Speaker
Catarra Real Estate, Inc

I agree with you, 80% gut feel and 20% data.  I'll run a CMA when I'm back at the office but my impression of the home and knowledge of the market usually get me within 5% of what the CMA says (if not less).

March 09, 2012 01:20 PM
Rainmaker
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Nancy Conner
Olympia/Thurston County WA
Managing Broker - City Realty Inc

I think the empirical data can give an indication of the range of pricing that may be appropriate - but I totally agree that those gut feelings tell even more about where in the range - or if there is a reason why outside of the range altogether is the place to be. 

March 09, 2012 02:07 PM
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Richard Weisser

Richard Weisser Coweta Newnan Homes for Sale
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Author Bio: Richard Weisser is a Georgia real estate broker, licensed auctioneer, and has been writing about Georgia Real Estate since 1999.

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