Pricing a Property Correctly

[Jim M.]

This is not a scientific study of how to price a property correctly this is just a couple properties I have seen come on the market over the past month and how the sales ended up. Homes in desirable neighborhoods selling from $160-$200 sq foot.

Property one- Rehab with addition needed- comp home sold at 255k a few months earlier. Foreclosure with list price at 199k and within 5 days 120 showings and eventually seller accepted 290k. Frenzy was created by low price resulted in sale price 35k over a similar home recently sold. There were 14 offers from what I heard.

Property two- Rehab needed also with addition needed. recent comps sold in similar condition sold at 130k. Estate sale and agent listed home at 200k...no offers but many showings. I just locked it up under contract this morning well below the comp in the area.

Does anyone else have some examples of pricing correctly? I don't want to speak ill of the owners of the second home or cause myself some bad karma but the house was just priced wrong.