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Folks
As someone who has been in this industry for years I thought I'd share with the people that don't know just how real estate is valued(priced).
Of cause the way that agents price houses is by comparing recent sales in the area & listings in the area & making an estimate in price up or down depending on the house been appraised(very similar to charting).
Although agents are taught the replacement value method ie the cost to build the house + the cost of the land no one i've met uses this method, because you'll never get any listings, because the value of the house is only what people are prepared to pay & people who are looking to buy always have a good idea what the pricing in a particular area is.

Folks that have not brought a house maybe don't understand but those that have sure do.

JR
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