you set all emotions aside during the sales process. Buyers look for cues to figure out your motivation to sell, and the less you give them the more control you will have over the proceedings. • There is no direct dollar-for-dollar correlation between upgrade investment and market price. If you spend $3,000 to renovate, don’t assume you can add that amount to your asking price. Don’t be trapped by making your home the nicest, but also priciest, home in your area. If you have a ready-to-buy, bank-qualified buyer who is willing to pay a price you will accept, that is referred to as “market price.” It is an objective fact without influence. This transaction, once complete, will influence the market value of homes in your area. You determine the price of your home by looking at comparable local sales provided by a professional real estate agent, your property’s condition, and the current supply and demand. 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 oranges analogy, if demand for oranges increases, then 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 VS. MARKET VALUE
77
Powered by FlippingBook