Determining Property Value and Price
Determining Property Value
Many factors are considered in evaluating the market value of your property.
Fair Market Value
The basic laws of supply and demand greatly impact what a buyer is willing to pay for property and the amount financial institutions or lenders are willing to finance.
Fair Market Value may be defined as the price which a willing Buyer will pay, and which a Seller will accept:
- Both parties being fully aware of all actual and potential uses to which the property may be put
- Neither acting under the compulsion to buy or sell
- The property having been exposed to the market for a reasonable length of time
An opinion of value is based on:
- Location
- Condition of property
- Size of home
- Lot size
- Buyer demand
- Seller motivation
- Financing availability
- Interest rates
- Prices of similar properties in the area
- Recent sales of similar properties
- Prices of similar properties offered for sale that did not sell
Determining a Price
No single factor has more impact on the successful sale of your property than pricing. The price at which you choose to list your home will determine whether or not your home sells in a timely fashion, or languishes on the market.
When pricing your home consider:
- There is no such thing as an “exact price” in real estate.
- A sales representative does not determine the “worth” of your home.
- The market determines the value. Together we determine the price.
Your sales representative will:
- Show you a range of prices being paid for homes in your area.
- Present research on recent listings and sales in your neighborhood, the time spent on market, properties that did not sell, and why.
- Prepare a competitive market evaluation to ensure your asking price falls within the market parameters set for successful sale.
- Share his/her insight gained in working with buyers in your area.
- Work carefully with you to monitor pricing and guarantee optimum exposure.
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