This is a question that I am asked by my clients, along with fellow Realtors on almost a daily basis. I should preface this by saying I am not only a Realtor and Associate Broker, but also a Certified Residential Appraiser in Michigan.

The quick answer we have all been taught over the years is "A home is worth what someone is willing to pay for it" however, as we all know, it is never that simple! In a day and age of market and economic uncertainties, coupled with appraisal issues, that are sometimes even hard for me to understand, comprehend and rationalize, I believe it is time to get back to basics with Homeowners, Home buyers and Realtors alike!

First and foremost, buyers and sellers BOTH need to be aware of what SIMILAR homes are selling for in a neighborhood. The premise of pulling comparable's for clients seems so elementary yet it is only truly done on occasion from what I see and hear on a day to day basis. Finding similar homes within close proximity to the home you're selling that are recent is one of the best and only ways you can truly give a buyer and seller a realistic idea of what a home should sell for! Gone should be the days of saying "let's price it high and let someone make an offer" or "My buddy tells me to always go in 25% under what a seller is asking just in case they're desperate and REALLY want to sell!"

As Realtors, we all know or should know, values can and do change from neighborhood to neighborhood, and month to month. Just because a home is selling in one part of a city or community does NOT mean that the home is worth the same amount if you travel 3 miles away in that same city for instance or sometimes even across the street! Be diligent and before you tell a seller or a buyer what a home is worth, do your homework and then sit down and show buyers and sellers what is actually going on in their community with an apple to apple approach. This is the LEAST we can do for our clients and this will also make our own jobs much easier in the short and long run.

Lastly, we all know there is a plethora of information out there for buyers and sellers available online, but it is our jobs as Realtors to educate and help our clients make informed decisions when it comes to buying and selling real estate. After all, aren't we here to provide invaluable education and experience to our customers that can't be obtained on their own after a 10 minute web search on Zillow?

Burt Smith

Associate Broker

Century 21 Town & Country/Royal Oak/Birmingham

Please feel fee to email me at burtsmith21@yahoo.com with any questions or comments!