Market, Value, Pricing & Overpricing
WHAT IS MARKET VALUE?
Pricing your home at market value is the key to a satisfactory sale. Prospective buyers base a home value on certain criteria.
- Location, design, amenities and condition
- Availability of competing properties
- Economic conditions
- Factors that have little or no influence on market value.
- Price that was paid for the property
- Seller’s expected net proceeds
- Amount spent on improvements
- Impact of Accurate Pricing
Properties priced too high have a difficult time selling.
DETERMINING MARKET PRICE
In order to price your home correctly for the current market, you will need to consider:
- Homes sold within a recent time frame, because this shows what other people have paid for their homes within your area and within a close range of the square footage of your home.
- Homes currently on the market.
- Homes that failed to sell. It is important that we determine why these did not sell, so you can learn from their mistakes.
OVERPRICING HURTS YOU?
Overpricing beyond market value leads to a longer selling time and less net proceeds to you.
The best price is usually attained within the first few weeks of marketing.
People in the market for a new home generally have a certain price range in mind and this might keep your most qualified buyers from seeing your home. Once it is on the market for a lonnger time period it will begin to lose momentum.
The house must be appraised in order for most buyers to get a loan.