Neighborhood Experts Set Strategic Prices

We've had a lot to say about the marketing benefits of being a neighborhood expert. It's a well-established technique for appealing to prospective buyers or sellers. However, a recent discussion with an industry thought leader turned up another unexpected benefit: using neighborhood expertise as the basis for price recommendations and resolving price conflicts with clients.

You've all been there: a seller believes their home is worth significantly more than you know they'll be able to get for it. There are many techniques for resolving this conflict. (Why not share a few of your favorites in the comments section below?) But have you tried helping them see the light with neighborhood information in a consumer-friendly format?

I'm getting a little ahead of myself. Let's back up. What are the factors that influence listing price? Things like:

• Condition of the home
• Size of the lot
• Square footage of the home
• Aesthetic appeal
• Number of bedrooms
• Age of the home
• Quality of materials used in construction/remodels
• Views

But this list is missing what can often be the most important factor in pricing: LOCATION! How desirable is the neighborhood? What are other homes in the neighborhood selling for? What is the overall price trend in the neighborhood?