CHAPTER 2 First Steps To Home Selling “But You Gotta Know the Territory” — and Terminology 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. Setting the price at which to sell your home is not a simple formula, nor totally mathematical, as some websites may make you beleive. Many elements factor into the decision. Throughout this book, you will read examples of similar and similarly situated houses that sold for very different prices, along with the reasons for the disparities. A calculated home value is not necessarily what you believe your home is worth, nor what at website says its worth, nor what the tax assessor has deemed it to be worht. Your proeprty is worth the most that a ready, willing and able buyer is ready, willing and able to pay. Recognizing all the factors in determinng value and desirabilty will help to avoid overpricing which is a major factor that leaves homes languishing or unsold. 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 in its local
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