How to Tell Whether a Listing Price Is Realistic in Brentwood

The most common mistake is comparing one asking price to other asking prices. Active listings tell you what sellers want. Closed sales tell you what buyers actually paid, and only that number settles the question.

When you pull comparable sales, look for homes that pass a few tests:

• Recent. Sales from the last few months reflect current conditions better than sales from a year ago. This matters most when rates or inventory have shifted.
• Close by. A home in the same neighborhood beats a similar house across town. Ideally it sits on the same side of any major road.
• Similar where it matters. Square footage, bedroom count, lot size, age and condition should all fall in the same range.

Pending sales are worth noting too. They haven't closed yet, so the final price isn't public, but they show what has recently drawn a buyer. Homes that have sat on the market a long time help in the opposite way. They often show where buyers said no.

Two homes on the same street can deserve very different prices. Once you have a handful of comparable sales, look at what separates them from the listing in front of you.

• Condition and updates. A kitchen redone last year and a kitchen original to the house aren't the same product, even when the square footage matches.
• Lot and setting. Backing onto open space, a busy street or a neighbor's two-story wall changes what a buyer will pay. Yard size, a pool and side-yard access matter here too.
• Layout. A downstairs primary bedroom, a floor plan that works or an awkward room arrangement can move value more than one extra bedroom does.
• Systems. The age of the roof and HVAC, and whether any solar panels are owned or leased, all affect how buyers see the price.

None of these adjustments has a fixed dollar value, so judgment comes in. Online estimates often fall short here because the algorithm usually can't see inside the house.

Sellers face the same question from the other side. A number can feel right because a neighbor got it two years ago, or because it's what you need to make your next move work. Neither reason means the current market will pay it.

Ask anyone who suggests a list price to show their work. You should see the specific closed sales they used, why they chose them, and how they adjusted for differences between those homes and yours. They should also tell you what they expect to happen if the price is right, and what they would change if it isn't. A clear answer to that second question often tells you more than the number itself.

Pricing high doesn't usually give you room to negotiate. More often it sends buyers toward competing homes that look like better value, and buyers learn they can wait you out. A price that matches the evidence tends to draw the most attention while the listing is new. You can see how we approach this in our process.