Analytics is the discovery and communication of meaningful patterns in data (or so says Wikipedia.) At One South, it amazes us that the market does not demand this service from the REALTORS and their brokerages.
Choosing three comparable sales to help price a home is not accurate. A true pricing model means looking at:
- Not just comparable SOLD properties, but comparable ACTIVE and PENDING properties as well
- Examining SUBSTITUTE available properties
- Analyzing PRICE PER FOOT analysis
- Use of SCATTER PLOTS
- Feasibility (for NEW HOMES and/or PROJECTS)
Sometimes it is as simple as looking at the last three homes that have sold in your neighborhood, making some simple adjustments, and pricing accordingly. However, when pricing PROJECTS, NEW HOMES, or UNIQUE PROPERTIES, having all of the tools available to truly see what the data suggests means better decision making.