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Understanding the Law of Diminishing Returns in Pricing: A Guide for Real Estate Agents

Birmingham Appraisal

Pricing a property correctly from the outset is crucial for attracting potential buyers and maximizing the seller’s return on investment. In this blog post, we will delve into the concept of the Law of Diminishing Returns and explore how real estate agents can utilize this knowledge to effectively price their listings.

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My Top 11 Tips For Realtors When Choosing Comps

Birmingham Appraisal

In today’s market where so much information is available online, it’s important to put in the research upfront when pricing a home because we know buyers do and they will know when a listing is overpriced. Using sales that are inferior, similar, and superior to the subject in some aspect constitutes bracketing.

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Price Adjustments and the 2023 Market

Lamacchia Realty

Now, a year and a half later, with rates up to 8%, buyer affordability is significantly diminished. Coming from the frenzied pandemic market where inventory was at historically low levels , sellers are holding the line and buyers are still the ones competing in this market. In the graphic to the right, you can see this more clearly.

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Price Adjustments in this New Housing Market

Lamacchia Realty

Now, months later, with rates up nearly 100% from the start of the year- January mortgage rates were hovering in the low to mid 3’s and this week reached 6.28%- diminished buyer affordability is causing a big downshift in demand. Rising prices weren’t favorable but with historically low mortgage rates , they were still affordable for buyers.

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Why Agents Should Share Their CMA With The Appraiser

Birmingham Appraisal

Understanding the Role of the Real Estate Appraiser When a home buyer finds a home they would like to purchase and have the need to obtain financing they will work with a lender. Each will determine what features move the needle on value for buyers and this will be reflected in their opinion of value.

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Price Adjustments in 2021: Tis the Season

Lamacchia Realty

Though there were several months through winter and spring that it never seemed possible this year, the market is slowly beginning to be less competitive for buyers. But if the home has been available long enough, it’s time to consider adjusting the list price to gain more visibility from more potential buyers.

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Housing Statistics for Beginners, Part 2

Birmingham Appraisal

Unlocking the Basics: Part 2 of Housing Statistics for Beginners In my last blog post, which was the first installment in this multi-part series, I discussed why it is important for agents to be aware of local housing statistics. The average sale price will factor in the outlier sales which could possibly skew the results.