CHAPTER 2 Why Where You Live Determines ermines What You’ll Get ou’ll Get Location may not be everything—but it’s close. In real estate, location is king. It’s often the single most critical factor in determining a home’s value. Whether you’re selling for the first time or the fifth, understanding what drives your home’s price is the key to making smart decisions—and avoiding costly mistakes. But here’s the thing: pricing your home isn’t about plugging numbers into a formula. It’s not purely mathematical. It’s a blend of art, science, and strategy. Why do two homes in the same neighborhood sell for wildly different prices? That’s exactly what we’ll uncover. Recognizing these nuances early can save you from the pitfalls of overpricing—a mistake that can leave your home languishing unsold, gathering dust while buyers move on. The Building Blocks of Value When it comes to value, not all terms are created equal. Here’s a quick breakdown to demystify the lingo: • Market Value: The price a buyer is willing to pay and a seller is willing to accept, based on what’s happening in your local market right now. • Appraisal Value: Determined by a professional appraiser, this value plays a huge role in loan approvals and can impact things like mortgage insurance requirements. • Assessed Value: Assigned by your local government for tax purposes. It’s often wildly different from market value,
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