Wondering how to get your home Sold in a challenging Buyer's market? A key factor is in pricing it right. What a home brought a year ago is not a valid price point today, in a constantly changing real estate market. So what exactly is market value? Let's start by understanding what market value is not. Market value is not a tax assessed value, and it is not a replacement value. Market value does not mean the price you paid plus the value of improvements, or what the home appraised for when you refinanced last summer. Rather, market value is the value at which a Seller is willing to sell and at which a Buyer is willing to buy. The market always determines the price, and the market is always changing.
Value is affected by many factors: condition, location, obsoleteness of features, progression/regression, etc. Comparable sales help determine how to price it right, as well as an updated knowledge of what price points are doing in any given area. There are many ways to arrive at a price that will bring offers in no matter what the market is like. Any property will sell if it is priced correctly!
Negative media regarding the housing market is driving pricing down. Many folks are of the belief that Sellers are selling at a blue light special prices of 30% off and are making offers which so reflect. This is simply not true! While housing values are down because of the foreclosure and short sale situations, I can assure you we're not seeing many blue light specials!
So, who is buying? First time homebuyers, investors who plan to hold properties for a couple of years to gain an equity position, and new investors who are taking advantage of self-directed IRAs to get started in real estate investing. It's a great time to buy real estate!! In a downturned housing market, the bad news is that you may be taking quite the haircut in selling your home, but the good news is that you will likely also be giving a pretty good haircut on the next home you purchase. It's still up to you to make the move!
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