Do You Understand Market Value?
Let's say it's time to sell the car. What steps would you take? It probably would go something like this:
- Check the classifieds section of your newspaper, checking out prices on cars similar to yours.
2. Advertise priced within that range.
Though you may not realize it yet, you've just determined the market value of your car.
Simply stated, market value is what buyers are willing to pay for that car.
What if you want to put your house on the market, though?
It should go something like this:
- You and your REALTOR® will determine the market value of your property. It's critical you get this right.
- If it's priced too much above its' market value, you probably won’t get any offers.
- Alternatively, if it's priced too low, it likely will sell quickly but you’ll have left a lot of money on the table.
How does a REALTOR® help you determine your home’s current
market value?
He or she will examine a variety of factors:
- The desirability of the neighbourhood
- The features of your home
- How well it has been maintained?
- Have there been renovations?
- Any other improvements made?
- Location
- What have similar homes in your area recently sold for – which is the strongest indicator of current market value as that is what it took to open the buyers' wallet.
Knowing your homes' market value allows you to make
an informed decision regarding correct pricing that it will attract
the right type of buyers and earn you the best possible sale price.
Pricing your home high above its market value in the
hopes that some unwary buyer will buy it rarely works.
Your property may be worth more than you
think. If you want to find out, invite a good
REALTOR® to your home to do an assessment.
