I've been working on a Comparable Market Analysis, more commonly known as a "C.M.A."... which is actually a "price analysis" for determing the market value of a home.  This FREE CMA differs from an official  appraisal (which costs between $400 and $450) because appraisers can use only "Sold" information for their report.  We use "active", "sold", "pending" and "expired" listing information for our Market Analysis report.  What we do is factor in all the current market conditions along with the black and white statistics of sold information.

The report I was doing today was not an easy one.   It is a wonderful and unique home, which causes challenges in doing a price analysis and making a listing price recommendation.  Generally speaking I  like to compare total square footage (of the home), age, and lot size.  This home, although built in 1932, has a significantly newer "effective age".  That means I have to compare to newer homes or those that have been as well maintained or upgraded to the degree of this particular subject property.   

Anyway, homes of comparable size are selling for $105,000 - over $350,000.  When you get into a situation like this an agent must rely, to a large degree, on their experience of the market activity and economic conditions.    Once a price is determined, the buyers will tell you whether you're right or wrong.  In a very active market like we are in now, I generally recommend a starting list price on the high side.  If it's too high, the buyers will tell you (by not buying... or buying something else).  If the seller is anxious to sell, this strategy is not recommended, because valuable time is lost.  In that case, a more realistic price should be set.  But, if the sellers have the time to test the market I am all for maximizing their profit potential.

Sometimes, as in the case of one of my current listings, price isn't the issue at all.   I have a 5300 square feet home, with 8 bedrooms on nearly an acre.  In this case, you've got a home that will appeal to a certain set of people and not to others.   When pricing a home like that, I take "replacement cost" into consideration then make adjustments based on market conditions.  It's not so much a matter of price as marketing it to the right target audience.

Hope you find this information useful. 

Have a great day!
Carol