For example, if you’re in the position of needing to sell your home quickly, you might have to compromise on price. If a home is inherited and not in great condition (but in a great location), this will involve a completely different pricing strategy. Setting a listing price for your home is actually a strategic exercise that aligns the seller’s goals with the overall selling approach. It involves factors such as timing, location, condition, features, amenities, etc. A calculated home value isn’t necessarily what you believe your home is worth. Recognizing this helps you avoid overpricing—a big factor that often leaves homes languishing on the market. As you begin the process of downsizing, you definitely want to avoid this happening to you.
MARKET VALUE, APPRAISAL VALUE, AND ASSESSED VALUE
When working with your real estate agent to set the right price for your home, it’s important to know the difference between the three terms listed above. If you can understand the basics of what these mean and how they differ, you can work better with your agent. Market Value: Refers to the “probable” price that a home should sell for within an open, competitive market under fair sale conditions. In other words, it’s what your home should be able to sell for within the constraints of its local market and neighborhood. What would other comparable homes sell for at this time and in this market? Appraisal Value: Refers to the value given to a home after a professional appraiser has conducted a thorough evaluation of the home and its worth. The appraiser will look at various aspects
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