Market value is the main concept you must understand when determining the value of your home. But what is it and how can it help you price your home?
What is market value?
Market value is the amount prospective buyers are willing to pay at the time homeowners are ready to sell. The best way to find out the market value of your home is to ask me for help. You will be able to decide what the best price for your home is by allowing me to provide and discuss with you a Comparative Market Analysis (CMA).
What is a CMA?
The CMA will include homes in your area that are currently on the market, expired from the market, pending a sale and already sold within the last three to six months. Of course, the best indicator of your home’s value is the price for similar homes in your area that have already been sold. The comparison is based on the proximity to your home and the similarity of characteristics such as lot size, square footage, number of bedrooms and baths, etc.
It’s a good idea to sit down with me and discuss how each factor of the market analysis affects your home’s value. You can consider the current listings to identify the competition, recently sold homes to indicate what buyers are willing to pay, homes with a sale pending to show the current demand and expired homes to suggest what buyers are unwilling to pay.
What are the dos and don’ts?
- Do obtain a current CMA and discuss the findings with me.
- Don’t price your home based on factors not affecting the market value. Those factors include how much money you need to buy your next home, how much you paid for your current home, how much you paid for home improvements, the value of similar homes in different communities, area appreciation statistics, the cost to build the same home today and personal attachment.
- Discovering how much your home is worth is the first step to ensure that your home is priced correctly. So, take the time, do the research, talk with me, and together we can decide what the best price is in today’s market.
- Contact me for more information.
Joan Byrnes, Realtor®
Real Living Lifestyles