What is the Value of A Home?
THE VALUE OF A HOME...
When markets shift from one cycle to another (i.e. sellers' market to Buyers' market) it is difficult to assess the appropriate value of a home. Everyone will have a different opinion about the "market value" of your home. Your neighbor, the bank, the appraiser, you and your agent will all come up with different opinions of value. Keep in mind that it is the market what sets the price (a house is only worth what a willing and able Buyer will pay for it).
So how can a Seller arrive at the ideal list price for their home? And how can they price a home in the "sweet spot" to entice the maximum number of offers and get the highest market price?
Buyers (and appraisers) make their decisions based on comparing your home to comparable homes in the area. However, there are fundamental differences:
- Buyers also look at past sales, but most times they concentrate on comparing to other available homes (ACTIVE inventory) to determine which home would provide them with the best value for their money.
- Sellers usually price their home to generate higher-than-average traffic, entice Buyers to make offers, and support a "fair market price" in the eyes of the appraiser! They must look at ACTIVE (the competition), UNDER CONTRACT (successful competitors) and SOLD (reality check).
- Appraisers normally look only at SOLD homes.
Most realistic Buyers want to get a "steal" (i.e. a dramatically undervalued home), but realize they may only get a "fair deal" for prevailing market conditions.
Your REALTOR can help you look at both recent sales and available inventory to give you advice about the right pricing for the prevailing market. Sellers set the list price, and control the condition of the home. Buyers determine the price they are willing to pay for the home.
Patient and experienced negotiators can normally use their market knowledge and negotiating experience to arrive at an agreeable price that favors their client. Our Seller clients normally get a higher than average price, while our Buyer clients get a higher than average discount.
Hire the Alan Donald Real Estate Team - we get it done! Call us today on 843-900-0155 to start the process.