Published March 14, 2017 (3/14 – Pi Day, or is it pie day?)
For whatever reason, most of us are aware of “Pi”. Mostly, we just think of it as that number that goes on and on forever, with no end or solution. And we just know it as 3.14.
When and why do we learn about it in life? What good does it ever do us? There’s certainly a lot more to it…
For instance, it’s a “constant” ratio in circles. And, it’s an “irrational” number. They teach us that, too. Maybe that stuff sticks with us. Maybe not.
For most of us, just knowing the 3.14 part is good enough. There’s no need to think about it much beyond that. Pi probably isn’t going to affect you or me one way or another in life… But, if you know more than two digits to the right of the decimal, you’re a genius in my book!
But…there is a rather “constant” and “irrational” number in real estate that does affect many people. And most people never learn about it in life…at least until they list their home for sale. That number is the listing price of a home…
It’s a “constant” in the sense that almost every homeowner wants the listing price of their home to be a much bigger number than it should be. It is also a “constant” thing that real estate agents have to help clients understand, and even come to terms with.
But many homeowners disregard what real estate agents explain, and list their home for an “irrational” number, which is too high. Which then creates an unsolvable problem (much like Pi is)…
Listing a home for too high of a price, typically makes the process of selling a home go on, and on, and on. Forever. With no end… (also much like Pi is).
But, unlike Pi, proper listing prices for homes are not unsolvable. There’s a rational number to list every individual home for on the market.
No, it isn’t necessarily easy to figure out. But it doesn’t take a mathematician. It takes a real estate agent who knows how to analyze where the house should be priced and positioned within the current market. And, it takes an agent who knows how to explain it well, so that their client doesn’t decide to list for too high of a price.
Not all agents can or do these things well. Which is why “irrational” pricing is a “constant” problem so many owners struggle with.
When selling your home, it’s important to find an agent who prices homes perfectly. Not too high… but also, not too low. It’s a fine balance that needs to be struck.
So, when it comes time to list your home for sale, it’s important that you or your agent finds, and understands, the most rational number to list your home for on the market.
Home inventory (in other words, homes for sale on the market) is low currently and some buyers are having a hard finding a home in their preferred neighborhood or are facing multiple offers.
If you are curious about what your home is worth in today’s market, complete the form on the top right side of this page to request a home valuation. Be sure to include the property address. There is absolutely no cost or obligation.