Comments on: The Fine Art of Pricing a Home http://blog.redfin.com/seattle/2008/09/the_fine_art_of_pricing_a_home.html Redfin Seattle Sweet Digs Sat, 11 Feb 2012 00:35:59 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Piggyback Post: The Fine Art of Pricing a Home | Redfin Seattle Sweet Digs http://blog.redfin.com/seattle/2008/09/the_fine_art_of_pricing_a_home.html/comment-page-1#comment-4250 Piggyback Post: The Fine Art of Pricing a Home | Redfin Seattle Sweet Digs Fri, 05 Sep 2008 04:14:53 +0000 http://blog.redfin.com/seattle/2008/09/the_fine_art_of_pricing_a_home.html#comment-4250 [...] today, our man Rick wrote a pithy post on the delicate balance stricken between instinct and integers in the pricing of homes. He says: [...] [...] today, our man Rick wrote a pithy post on the delicate balance stricken between instinct and integers in the pricing of homes. He says: [...]

]]> By: John http://blog.redfin.com/seattle/2008/09/the_fine_art_of_pricing_a_home.html/comment-page-1#comment-4236 John Wed, 03 Sep 2008 20:31:38 +0000 http://blog.redfin.com/seattle/2008/09/the_fine_art_of_pricing_a_home.html#comment-4236 This is too easy. This is too easy.

]]> By: Michael P Lindekugel http://blog.redfin.com/seattle/2008/09/the_fine_art_of_pricing_a_home.html/comment-page-1#comment-4231 Michael P Lindekugel Wed, 03 Sep 2008 14:00:20 +0000 http://blog.redfin.com/seattle/2008/09/the_fine_art_of_pricing_a_home.html#comment-4231 I am a commercial practitioner. I don’t care if someone buys or sells a home. I am not surprised. Pricing a home is more about specific market knowledge than complex mathematics. Homes have too many qualitative components that can not be effectively quantified in a rational or meaningful manner. In a normal market, an good agent can price a home within +/- 3% of the eventual sale price. Realistically, I don’t fine tuning a price is possible. Zillow spent an enormous amount of money trying to reduce the pricing process to a mathematical exercise with algorithms. Zillow freely admits they are within +/-10% of the sale price ONLY 60% of the time for Seattle. Not so good agents will struggle with pricing especially when the market is climbing or declining. I am a commercial practitioner. I don’t care if someone buys or sells a home.

I am not surprised. Pricing a home is more about specific market knowledge than complex mathematics. Homes have too many qualitative components that can not be effectively quantified in a rational or meaningful manner. In a normal market, an good agent can price a home within +/- 3% of the eventual sale price. Realistically, I don’t fine tuning a price is possible. Zillow spent an enormous amount of money trying to reduce the pricing process to a mathematical exercise with algorithms. Zillow freely admits they are within +/-10% of the sale price ONLY 60% of the time for Seattle. Not so good agents will struggle with pricing especially when the market is climbing or declining.

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