CHAPTER 2 First Steps to Home Selling o Home Selling
Location! Location! Location! Location is undoubtedly the most critical factor in real estate and a key element in determining real estate prices. Both novice and experienced home sellers must understand the factors influencing a home’s price. Determining the selling price for your home is neither a straightforward formula nor entirely mathematical. Various factors contribute to this decision. Throughout this book, you will encounter examples of similar and comparably situated homes that sold for significantly different amounts, along with explanations for the differences. A calculated home value does not always align with your perception of your home's worth. Understanding this helps prevent overpricing, a MAJOR factor that leads to homes sitting unsold or lingering on the market. Familiarity with real estate terms market value, appraisal value, and assessed value can save you disappointment and frustration, allowing you, the home seller, to meaningfully engage in setting a home’s listing price. The most widely accepted definition of market value is “the most probable price that a property should command in a competitive, open market, under conditions necessary for a fair sale.” This essentially reflects a pre-negotiation perspective on the price a home should command in its local market, typically defined as its geographic area, like a suburb or neighborhood. The appraisal value is an evaluation of a property’s worth at a specific moment conducted by a professional appraiser. This appraised value plays a crucial role in loan underwriting, as it is 4
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