Kathy DRAYTON PRICE - SELLING SECRETS YOU CAN'T AFFORD TO MISS

CHAPTER 2 First Steps to Home Selling o Home Selling

Location! Location! Location! Location is the most crucial consideration in real estate and a major factor, if not the predominant one, in real estate pricing. Novice (and not-so- novice) home sellers alike must know the considerations that determine a home’s price. Determining the selling price for your home is not straightforward. It involves a variety of factors and is not simply a matter of calculations. This book provides examples of houses in similar situations that sold for very different prices and explores the reasons behind these disparities. It's important to understand that the value you have in mind for your home may not align with its actual market value. Recognizing this can help you avoid overpricing, which is a major reason why homes may struggle to sell. 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 used definition of market value is “the most probable price a property should bring in a competitive, open market, under conditions requisite to a fair sale.” Essentially, this is a pre- negotiation opinion of what a house should bring into its local market, i.e., its geographical area, generally an area such as a suburb or neighborhood. Appraisal value is an evaluation of a property’s worth at a given point in time that is performed by a professional appraiser. 5

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