Understanding Market Value
December 6th, 2017
Market value is generally accepted as the highest price that a ready, willing, and able buyer will pay and the lowest price a ready, willing, and able seller will accept for a property.
Pricing is the key to positioning your home to attract qualified buyers.
The existing pool of prospective buyers determines a property's value based on:
- Location, design, amenities and condition.
- Availability of comparable (competing) properties.
- Sale price of recently sold comparable properties.
- Economic conditions that affect property transactions and values.
Factors that have little or no influence on the market value of a home include:
- The price the seller originally paid for the property.
- The seller's expected net proceeds.
- The amount spent on improvements.
- The seller's motivation for selling.
The impact of accurate pricing:
- Properties priced within market range generate more showings and offers, and sell in a shorter period of time.
- Properties priced too high have a difficult time selling.
- Properly priced homes may streamline and fast track the appraisal process.
An impartial evaluation of market activity is the most effective way to estimate a property's potential selling price. A Comparative Market Analysis (CMA) considers similar properties that:
Are currently on the market
- These properties will be competing with yours for the attention of available buyers.
Have sold in the recent past
- This shows us what buyers in the market have actually paid for similar properties.
Failed to sell:
- Understanding why these properties did not sell can help avoid extended market time.
Our goal is to sell your property for the highest price possible in the shortest time frame possible. To do that we need to price your house within an appropriate range of market value. The danger of overpricing is that your house will sit of the market for too long, will become a stale listing, and will ultimately sell below market value.
Posted in the category Sellers