Have you ever hired a real estate agent to sell your house or to represent you to buy your next home? If you have, invariably, at some point, you asked that real estate agent something about what they think the house is “worth”. We’re all humans, and with that comes the constant possibility of mistake-making. What is one of the biggest mistakes real estate agents make when pricing a home? Watch the video below

PRICING A HOME MISTAKE

Here’s a clue … “Economics 101”. Most agents are ignorant of basic economic principles. Let’s set aside “supply and demand”, the forces of each, critical to understanding the relative position of a property to historic competitive sales. That’s a subject for a different discussion about which you will find blog articles here that I’ve written.

The purpose of this article is to introduce you to the concept of “diminishing rates of return” as it relates to pricing a home whether it be one of the many Palos Verdes homes for sale or property anywhere in the world. The concept is the same. Watch the video below, then let’s set a time to talk. Use the “Contact Us” tab at the upper right of this page or the blue Calendly link at the bottom of the page. Thanks for watching.