Understanding Market Value

Market-sensitive pricing can be the key to maximum market exposure and ultimately, a satisfactory sale.

Property value is determined by the existing pool of prospective buyers, based on:

  • Location, design, amenities and condition
  • Availability of comparable (competing) properties
  • Economic conditions that affect property transactions

Factors that have little or no influence on the market value of a house include:

  • The price the seller paid originally for the property
  • The seller’s expected net proceeds
  • The amount spent on improvements
  • How urgently the seller needs to purchase another home

Accurate pricing is important because:

  • Properties priced within market range generate more showings and offers and sell in a shorter period of time.
  • Properties that are priced too high may sell with difficulty and/or take longer to sell.

An impartial evaluation of market activity for similar properties is the most effective way to estimate a property’s potential selling price. A comparative market analysis displays properties that:

  • Have sold in the recent past – shows what buyers in this market actually paid for properties similar to yours.
  • Are current on the market – shows properties that are competing with your property for the attention of available buyers.
  • Failed to sell – shows properties that did not sell, and our understanding of the reasons can help avoid disappointment in marketing your property.
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