Determining The Value Of Your Home
DETERMINING THE VALUE OF YOUR HOME
A comprehensive market analysis is essential to determine the value of residential property. Location and characteristics of the property are the key elements in determining value. Therefore, the basis for evaluation are similar properties in your area. The market analysis takes into account the amount received from recent sales of comparable properties and the quantity of comparable properties currently on the market. The desired end result, of course, is to find a price that will attract a willing and able buyer in a reasonable time.
Once the value of your home has been determined, you can decide on an offering price that will achieve your goals. Generally, the price should not exceed the value by more than 5% or potential buyers may not even make offers. Naturally, if you want to sell quickly, your asking price should be very near the value.
The following are a few things to keep in mind about pricing:
* Realistic pricing will achieve maximum price in a reasonable time.
* Your cost or profit desire is irrelevent; the market determines the price.
* The cost of improvements are almost always more than the 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 proceeds.
FAIR MARKET VALUE
How to sell your home for the best price, in the shortest time, with the most favorable terms and conditions? By pricing it right, initially.
Major Factors Affecting Value
* Supply and Demand
* Seasonal Markets
* Mortgage Market
* Political Actions
* Location, Location, Location
Methods of Evaluation
* Market Value Approach
(comparable property sales)
* Income Approach
(investment or income producing properties)
* Cost Approach
(most useful on new properties when replacement values are readily determinable)
We’ll do it right! My Comparative Market Analysis will consider the factors above and lead us to listing your property right...from the beginning.