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Wouldn't you like to know the market value of your property with just a call or an e-mail? Get a free, no obligation CMA and we'll keep it updated for you as market conditions change.
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Pricing a home is far trickier than you might think. Real estate
professionals draw on science, experience and talent, to arrive at the ideal
price, one that leads to a fast sale and nets the most proceeds for the
seller.
Before considering what factors influence price, let's look at the factors
that don't: You would never price a house based on what you paid for
it-whether you purchased it six months ago or 60 years ago. The price you
paid has no bearing on its current market value. Nor would you solely base
the price on improvements you've made. After all, that "improved" kitchen
or bathroom may not be to the buyers' taste. They may discount the price
to allow them to improve upon your improvements. And what you need to
clear on the sale has no bearing on the asking price either. Even the
assessed value isn't always a reliable plumb line.
So what does influence price? Think of housing as a commodity that
fluctuates according to the universal law of supply and demand: many
houses + few buyers = a drop in value; many buyers + few houses = an
increase in value. Then factor in the terms, creative financing (for example,
a low-rate assumable mortgage or take-back financing), craftsmanship,
amenities and condition. This brings us closer to the true market value. A
Realty Times article (Choosing the Best List Price, August 25, 1998)
describes pricing this way: "[Price] is determined by the combination of
the seller's unique home and situation and the buyer's situation. In other
words, the market is created house by house." That is, what an individual
buyer is willing to pay and what a seller is willing to accept.
Where does this leave you? Generally, the best indication of what you can
get for your house comes from comparing it with similar houses in the
area that are currently listed, in contract or have sold within the last six
months. Evaluate your home against homes with common features such
as the number of bedrooms and bathrooms, the lot and appeal of the
location. Note the average list price, average sales price, the percentage of
listed homes that sell, the list to sales price ratio and the average number
of days on the market. A comparable market analysis (CMA), prepared by
your real estate professional, usually includes this information. You may
want to attend local open houses, solicit a professional appraisal, and
conduct research online as well. Broadening your search for objective
information will ultimately result in a figure closest to the ideal.
Don't make the mistake of overpricing. This strategy may backfire by
resulting in decreased activity, fewer offers, a lengthy marketing period,
and lower net proceeds. You might even make the competition look good.
By setting a price that reflects market value, sellers can generally benefit
from a faster sale, increased interest from real estate professionals,
greater exposure, and a healthier return on advertising. In addition, you
may even receive higher offers that will net you more than you had
anticipated!
Fill out this simple form to have Elizabeth create an accurate CMA for you. She'll keep you posted whenever the market changes. Prudential Joy Tarbell Realty is
an independently owned and operated member of The Prudential Real
Estate Affiliates, Inc., a Prudential company. Equal Housing Opportunity.
