Understanding Market Value

Market-sensitive pricing can be the key to maximum market exposure and ultimately, a satisfactory sale.

Property value is determined by the existing pool of prospective buyers, based on:

• Location, design, amenities and condition
• Availability of comparable (competing) properties
• Economic conditions that affect property transactions

Factors that have little or no influence on the market value of a house include:

• The price the seller paid originally for the property
• The seller’s expected net proceeds
• The amount spent on improvements
• How urgently the seller needs to purchase another home

Accurate pricing is important because:

• Properties priced within market range generate more showings and offers and sell in a shorter period of time.
• Properties that are priced too high may sell with difficulty and/or take longer to sell.

An impartial evaluation of market activity for similar properties is the most effective way to estimate a property’s potential selling price. A comparative market analysis displays properties that:

• Have sold in the recent past – shows what buyers in this market actually paid for properties similar to yours.
• Are current on the market – shows properties that are competing with your property for the attention of available buyers.
• Failed to sell – shows properties that did not sell, and our understanding of the reasons can help avoid disappointment in marketing your property.