Q: I don’t know how you real estate people ever come up with the prices that you do.

My neighbor’s house is for sale and it’s a total dump! I don’t even think it could be remodeled into anything. But their real estate agent has it priced at half a million! That’s crazy. No one will pay that much for it.

A: There are many things to consider when pricing a property for sale. Certainly the listing agent would have had to come up with comparable sales of similar homes, adjusting for our dip in the market over the last year. Other things to consider are location, condition of the house and property, and the obsolescence of the style and floor plan.

Some considerations are just an issue on Vashon, like the distance from the north end ferry. But most issues are the same as elsewhere and include things like the condition of the house, number of bedrooms and bathrooms, yard or garden, size of the parcel, closeness to recreational areas, and for families with children, the closeness to schools.

It’s important to consider the value of the land. Buying land and building is a very long and frustrating process for many people and it’s often more cost effective to remodel an existing house. The land your neighbor's house sits on has a spectacular view and spacious grounds. The landscaping hasn’t been tended for awhile, but, as the landscapers say, “it has good bones.” Just the land itself would sell for close to the asking price they have on the house.

As a neighbor, possibly with different standards of neatness, this property may seem “trashed”. But the house is structurally sound, has a good floor plan and a good location. It needs to be remodeled but just cosmetically like paint, newer appliances, nicer floor covering and yard clean up. The home offers many things that buyers are looking for and I think it’s priced well and will sell quickly.