Final answer:
To set a listing price in a fast-moving seller's market without an appraisal report, use comps and a comparative market analysis. Sellers can also track real estate listings in local newspapers for pricing data. Providing reassurance to buyers through warranties or maintenance records can help overcome challenges posed by imperfect information.
Step-by-step explanation:
When an appraisal report is not available, the best indicator for setting a listing price in a fast-moving seller's market is to look at comparable sales, also known as comps. These are the prices of homes that have recently sold in the same area and are similar in terms of size, condition, and features.
Comparative market analysis (CMA) is a tool that helps in gathering such information. In addition to using CMA, sellers might also check the real estate section in local newspapers to record sales prices for a number of homes that were recently listed, which is assumed to be a random selection.
In a situation of imperfect information, it might be difficult for a buyer and a seller to agree on a price because both parties might not have access to, or interpret the available data differently. When information is incomplete or uncertain, it can lead to disagreements on the valuation of a property.
To reassure a possible buyer, a seller could provide a home warranty, show proof of maintenance, or share insights about the community to make the buyer feel more confident about the purchase.