How is home value determined?
A Comparative Market Analysis (CMA) is essential to determine the value of residential
property. Location and characteristics of the property are the key elements in determining value. Therefore, the basis for valuation is similar properties in your area.
The market analysis takes into account the amount received from recent sales of comparable properties and the quantity and quality of comparable properties currently on the market. The desired end result is to find a price that will attract a willing and able buyer in a reasonable time.Once the value of your home has been determined, you can decide on an offering price that will achieve your goals. Generally, the price should not exceed the value by more than 5% or potential buyers may
not even make offers. Naturally, if you want to sell quickly your asking price should be very near the value.
The following are a few things to keep in mind about pricing:
» Realistic pricing will achieve maximum price in a reasonable time.
» Your cost or profit desire is irrelevant; the market determines the price.
» The cost of improvements are almost always more than the added value.
» Houses that remain on the market for a long time do not get shown.
» A house that is priced right from the beginning achieves the highest proceeds.
determine your home value
WHY USE A REALTOR?
Why use a REALTOR®? When selling your home, your REALTOR® can give you up-to-date information on what is happening in the marketplace including price, financing and terms of competing properties. These are key factors in a successful sale f your property at the best price in the lowest amount of time.
Only real estate licensees who are members of the NATIONAL ASSOCIATION OF
REALTORS® are properly called REALTORS®. REALTORS® subscribe to a strict code of ethics and are expected to maintain a higher level of knowledge of the process of buying and selling real estate. They are committed to treat all parties to a transaction honestly. REALTOR® business practices are monitored at local board levels. Arbitration and disciplinary systems are in place to address complaints from the public or other board members.
Your REALTOR® can help you objectively evaluate every buyer’s proposal and then help write an appropriate legally binding sale agreement. Between the initial sales agreement and settlement, questions may arise. For example, unexpected repairs may be required to obtain financing or a problem with the title is discovered. Your REALTOR® is the best person to help you resolve those issues and move the transaction to settlement.