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Newsletter
Market Value By: Serena Billmayer (CREA Broker Associate)
Determining price is one of the most critical steps in preparing your home for sale. A well-priced home often sells quickly once it is put on the market.
In understanding the market value of your property, we must deal with some key factors over which we have no control:
Specific Physical Qualities of Your Property: Location, Age of House, Size of house and lot, Floor plan and architectural style.
Market Conditions: Interest rates and availability of financing, Buyer demand, Prices of recently sold properties, State of the economy, Seasonal demand.
Competition: The number of similar properties for sale, Prices, terms, location, and physical condition of those properties.
Specific Physical Qualities of Your Property: Location, Age of House, Size of house and lot, Floor plan and architectural style.
Market Conditions: Interest rates and availability of financing, Buyer demand, Prices of recently sold properties, State of the economy, Seasonal demand.
Competition: The number of similar properties for sale, Prices, terms, location, and physical condition of those properties.
Accordingly, there are three factors which don’t have bearing on the market value of your home. They are:
Original price, Needed proceeds; the cash you want or need from the sale,Opinions of other people.
Original price, Needed proceeds; the cash you want or need from the sale,Opinions of other people.
In determining price, there are basic appraisal guidelines that Fannie Mae, Freddie Mac, HUD, and the VA require from appraisers, including:The comparable should be located within a mile radius in a similar neighborhood, preferably in the same subdivision, The true comparable must be a property that has sold. The sale should have closed within the past three to four months,The comparable should be within 400-square feet of living area to your home. Only square footage of finished living area (heated and cooled areas) is used, Adjustments are made for garage/carports, patios, pools, basements, AND seller concessions, Age or condition of comparables can also make a difference.
A property attracts the most excitement/interest from the real estate community and potential buyers when it is first listed; therefore, it is important your home is priced right from the outset. By placing your property on the market at a realistic price from the very beginning, you maximize your opportunity of reaching the most qualified buyers and obtaining top $.
