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Choosing the Right Price
Determining the Market Value of Your Home
Market value is the value of your house as seen through the eyes of a prospective buyer who has many properties to choose from.
A Comprehensive Market Analysis is essential to determining value.
This market analysis has many elements:
- Location is one of the most important elements.
- Characteristics of the property is another.
- Similar properties for sale in your area are considered.
- Recent sales of comparable properties are also included.
Our goal is a price that will attract a willing and able buyer, in a reasonable time, at the best price:
- The price should not exceed market value by more than 5%.
- If overpriced, potential buyers may not even make offers.
- Overpriced houses get "stale" with buyers and agents quickly.
- For a quick sale, the asking price should be very near market value.
- Long marketing periods can be expensive due to loss of buyer interest and "wasted" mortgage payments.
Things to keep in mind about pricing:
- Realistic pricing will achieve maximum price in a reasonable time.
- Your profit desire is irrelevant; the market determines the price.
- The cost of improvements is almost always more than their added value.
- Houses that remain on the market for a long time do not get shown.
- A house that is priced right from the beginning achieves highest total net income.
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