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What is the best price
for a particular Vancouver WA Home For Sale or Property in Clark County Washington?
Both Home Sellers and Home Buyers ask us this question every day.
Mortgage lenders, appraisers, and real
estate brokers use what is called the "Fair Market Value" (FMV)
of a Home or Property. FMV
has been defined as "the price that a buyer is willing to pay and
the seller is willing to accept, when both parties are knowledgeable
about the property and neither is under any time pressure to buy or
sell". OK -- now how do I figure that out?
The starting point for determining a fair price may be an opinion of
the value or "comparative market analysis" (CMA). Such an analysis must use
information on similar properties (considering: location -- same or
nearby MLS Area, age and
other relevant features such as Finished Square Footage, and
whether, in the case of a sold home, whether there were Buyer
Concessions built into the sales price) which are: 1) already sold, 2) currently
for sale, or 3) expired properties (those which did not sell). Local,
national and international trends and market conditions must also be
evaluated.
By comparing similar properties in each of the three categories and
the market conditions, appraisers, lenders and agents come very
close to the maximum price that buyers would be willing to pay for a
house.
Of the three categories, "1) already sold" carries the most weight
with respect to both where a Home Buyer should place an Offer; and
where a Home Seller should list their home. For the homes
currently for sale, there is a good chance the home is priced too
high, and does not reflect FMV. For homes who's listing
Expired, they were most certainly in fantasy land when they priced
their home, as no buyer completed a sale at that price.
Before you sign a Purchase and Sale Agreement; or, a Listing
Agreement, make certain you know the current status of the "Sold"
category for the property in question. We want the property to
"Appraise out" ensuring a smoother transaction. Our
team regularly performs CMA's for both our Buyers and Sellers to
ensure our clients do not unknowingly exceed Fair Market Value.
We at the Alexander - Slocum Team are here to assist with your real
estate needs. We welcome your phone calls and e-mails!
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Kathryn Alexander & John Slocum, Alexander
∞ Slocum Real Estate Team |
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