Being in the industry and always looking for more data, and more accurate data, I’ve been subjected to an ongoing debate over who has the best, most accurate data.  I think most people are looking for some minor nuance to point conditions in their direction.  Looking for some subtlety to give them a glimmer of hope or more credence to their “theory” or projection.  I tend to look at many sources of data and draw more generalized inferences based on trends.  So I was very amused by this article from the Wall Street Journal, “Only One Person Knows a Home’s Value: It’s Buyer”.  The article engages the great data accuracy debate, even quoting knowledgeable experts, but never gets down to the nitty gritty hinted at in the headline.  Regardless of market conditions, a home is only worth what a buyer is willing to pay for it (and what a lender is willing to lend for it). 

It’s one of the oldest and most basic economic priniciples.  Anything, a car, a house, a doughnut, is only worth what someone is willing to pay for it.  Buyers don’t always make educated price decisions, especially when it’s a very emotional purchase, such as the nest you will raise your children in.  Even some of my own buyers have made a decision to buy based on “a feeling” regardless of my pricing advice. 

But to circle around to the point being made in my headline, you can follow data sources religiously but if you step back and look at the bigger picture, they all indicate the same trends.  I borrowed the following picture from the same article, because it illustrates my point so beautifully. 

So if you need to sell your home, price realistically, based on recent, local sales.  And then be prepared to negotiate, as it is a buyer’s market, and they tend to have the upper hand when it comes to negotiating.

from The Wall Street Journal

Opinions expressed in this article are the opinions of author, and not to necessarily the opinions of Meadows Group Inc.
All rights reserved on all original content, non-original content is given credit | Michelle Berry | 2009