CHAPTER 2 First Steps to Home Selling o Home Selling
Location! Location! Location! is the most crucial consideration in real estate and a primary factor, if not the predominant one, in real estate pricing. Novice (and not-so-novice) home sellers alike must know the considerations determining a home's price. Looking at the home or property "through the eyes of the buyer." When selling your home, determining the right price is not as simple as following a mathematical formula. There are several factors that you need to take into account before making a decision. In this book, you will find examples of similar houses in location and features sold at different prices for numerous reasons. It is essential to understand that the value of your home may not necessarily be the amount you think it is worth. This understanding can help you avoid overpricing, a significant factor leading to houses not selling or being on the market for too long. Familiarity with the real estate terms market value, appraisal value, and assessed value can save disappointment and frustration and allow the home seller to meaningfully engage in setting a home's listing price. The most commonly used definition of market value is "the most probable price a property would bring in a competitive, open market, under the conditions required for a fair sale." An appraisal value is an assessment of a property's worth by a professional appraiser at a specific time. It plays a crucial role in loan underwriting, as it determines the amount of money that can be borrowed and the terms of borrowing. For example, the loan-to-value (LTV) ratio is calculated based on the appraised 3
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