MARKET PRICE VS. MARKE S. MARKET VALUE
If you have a ready-to-buy, loan-approved buyer who is willing to pay a price you will accept, that is referred to as “ market price .” It is an objective fact. This price, once the transaction is completed, will influence the market value of homes in the area. Most likely, you determine the market value of your home by examining comparable local sales provided by a professional REALTOR©, your property’s condition, and the current supply and demand. What a piece of property might sell for based on features and benefits in a competitive market, and the current supply and demand of similar homes is its market value. You might value your home at a higher price than what a buyer will pay or its true market price . The perspectives of buyers and sellers also come into play when placing value on a home. Let’s say your home has an abundance of mature trees — a plus in your mind, but a buyer who loathes raking leaves will see that as a negative. If you just spent $10,000 to replace your roof, you might think you can set a higher price, but buyers already expect the roof to be in good condition. Proximities to schools, enternment, shopping, and medical facilities can also create value that certain buyers are willing to pay for. Buyers look for the right deal, but what they are willing to pay or a lender is willing to finance has limits. Strategic pricing is your greatest tool when selling your home.
PRICING EXAMPLE
A couple decides to place their home on the market and must
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