Understanding Market Value

Market-sensitive pricing can be the key to maximum market exposure and, ultimately, a satisfactory sale. The existing pool of prospective buyers determines a property's value, based on: Location, design, amenities and condition. Availability of comparable (competing) properties. Economic conditions that affect real property transactions. Factors that have little or no influence on the market value of a house include: The price the seller originally paid for the property. The seller's expected net proceeds. The amount spent on improvements. 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. DETERMINING A MARKET-SENSITIVE PRICE An impartial evaluation of market activity is the most effective way to estimate a property's potential selling price. A Comparative Market Analysis considers similar properties that: Have sold in the recent past This shows us what buyers in this market have actually paid for properties similar to yours. Are currently on the market These are properties that will be competing with yours for the attention of available buyers. Failed to sell Understanding why these properties did not sell can help avoid disappointment in the marketing of your property.