will play a role in values because inflation has a direct correlation to mortgage interest rates. If mortgage interest rates are higher, this will result in lower borrowing power for prospective buyers, as borrowed money will come at a higher cost. These variables are intertwined and affect one another. Just because certain factors such as demand and scarcity are favorable does not guarantee that consumers will overpay to borrow money due to inflation being up. What any piece of property might sell for — based on features and benefits in a competitive market, the current supply, and demand for similar homes — is its market value. You might value your home at a higher price than what a buyer will pay — its true market price. Using the bag of pineapples analogy, if demand for pineapples increases, they become more valuable, which can affect the price. If the demand for bags of oranges decreases, the value can no longer influence the price. Balanced markets will equalize market price and market value. Individual perspective also comes into play when placing value on a home. Let’s say your home sits in a wonderful, bucolic setting, with an abundance of mature trees and shrubbery — a major attribute in your mind. A buyer who loathes raking leaves and caring for a large lawn will see that as a negative. And to take it a step further, a buyer with a great job and expendable income may welcome the extra lawn maintenance as they will simply hire outside contractors to care for and maintain it. If you just spent $10,000 to replace your roof, you might think you can get a higher price, but buyers expect the roof to be in excellent condition. Proximity to schools, bus routes, and medical facilities can also create value that certain buyers are willing to pay more for. Creating value and focusing the marketing in a way that demonstrates that value in a way that it is palatable to ALL is what I specialize in.
Buyers look for the right deal, but what they are willing to pay
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