When market conditions indicate top-of-the-market pricing, what should a client consider?

When market conditions indicate top-of-the-market pricing, it is important for a client to consider the appraisal value as a critical component of their pricing strategy. The appraisal value provides an objective assessment of the property’s worth based on various factors, including recent sales of comparable properties, the property’s condition, and overall market trends. By considering the appraisal value, the client can ensure that they are not overpricing the property, which can deter potential buyers, or underpricing it, which could lead to a loss of potential revenue.

In a rapidly changing market, relying solely on top-market pricing without the insights from an appraisal can lead to mispricing. Serious buyers often conduct their own due diligence, which includes reviewing the appraisal. Thus, pricing should be a balanced approach that takes into account both market conditions and the objective appraisal value rather than depending only on fluctuating market dynamics or buyer interest alone.