SALE PRICE VS MARKET VALUE
If you have a ready-to-buy, bank-qualified buyer who is willing to pay a price you will accept, that is referred to as the “sale price.” These prices are observable with respect to already closed transactions in your area. This historic data is a set of objective facts without personal influence or bias. Each sale price transaction, once complete, will influence the market value of other homes in the area. You should determine the initial asking price for your home by looking at the comparable sales prices for a local and like set of homes provided by a professional real estate agent adjusting for your property’s condition, and current supply and demand. We refer to what a piece of property might sell for based on features and benefits in a competitive market, and the current supply and demand of similar homes is its "market value." You might value your home at a higher price than what a buyer will pay or its true market price. Balanced markets will equalize market price and market value. The perspectives of buyers and sellers also come into play when placing value on a home. Let’s say your home has an abundance of mature trees—a plus in your mind. But a buyer who loathes raking leaves will see that as a negative. If you just spent $10,000 to replace your roof, you might think you can set a higher price, but buyers already expect the roof to be in excellent shape. Proximities to schools, bus routes, and medical facilities can also create value that certain buyers are willing to pay for. Buyers look for the right deal, but what they are willing to pay, or the bank is willing to finance, has limits. Strategic pricing is your greatest tool when selling your home.
PRICING EXAMPLE
A home owner decides to place her home on the market and must
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