One of the main tasks prior to putting a residential property on the market is to determine the market value or what a buyer is willing to pay for the property. There are several methods that may be used to determine the market value of a 1 to 4 unit property. When selling, determine the listing price by using recent comparable sales data of like properties in the same subdivision and making adjustment for amenities and changes in the market. Sometimes this is not feasible, then you need to choose nearby comparably properties that are similar. Another problem scenario, is selling a resale home is in a new development area where the builder is currently building new homes. Normally, the seller will be required to price his home less than builder if wishes to sell. The selling price will probably vary from 7 to 10 percent less than the builder’s sales price unless there have been some great amenities added to the property. The seller of resale home needs realize most buyers will prefer a new home unless there is sufficient price differential. Couple other suggestions when preparing a market analysis that may be helpful to seller: first, provide market analysis of competing homes in the same area with when selling; second, provide an absorption schedule for the past two years stating how fast the current inventory will probably sell in the same area. By providing a multi-phase market analysis helps create more reliable report and the seller feels better inform.
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