Factors that have significant influence on the market value of a house, including:
~ Location, design, amenities and condition
~ Availability of comparable (competing) properties
~ Economic conditions that affect real property transactions
Factors that have little or no influence on the market value of a house include:
~ The price the seller originally paid for the property
~ The seller’s expected net proceeds
~ The amount spent on improvements
The impact of accurate pricing:
~ Properties priced within market range generate more showings and offers, and sell in a shorter period of time
~ Properties priced too high have a difficult time selling
Determining a market-sensitive price
An impartial evaluation of market activity is the most effective way to estimate a property’s potential selling price. A Comparable Market Analysis (CMA) considers similar properties that:
~ Sold in the recent past. This shows us what buyers in this market have actually paid for properties similar to yours.
~ Currently on the market. These are properties that will be competing with yours for the attention of available buyers.
~ Failed to sell. Understanding why these properties did not sell can help avoid disappointment in the marketing of your properties
The Dangers of Over-Pricing
An asking price that is beyond market range can adversely affect the marketing of a property.
~ Fewer buyers are attracted, and fewer offers received.
~ Marketing time is prolonged, and initial marketing momentum is lost.
~ The property attracts “lookers” and helps competing homes look better by comparison.
~ If a property does sell above true market value, it may not appraise, and the buyers may not be able to secure a loan.
~ The property may eventually sell below market value.
How Will Buyers See Your Property?
It is important for a property to make the best possible impression on prospective buyers. For more information on the factors that can interfere with a buyer’s appreciation of your property, go to staging your home.