Before you put your home up for sale you must set the price, but before you can do that, you must know what your house is worth. That doesn't mean what you paid for it, or how you upgraded it. Determining worth is simply finding out what someone would pay for it.
The real estate market is in constant flux, not only as a whole but in particular areas as well. Knowing what is going on in the overall and local real estate markets will help you understand how these conditions can affect the sale of your home.
MAJOR FACTORS AFFECTING MARKET VALUE
- Supply and Demand
- Seasonal Markets
- Mortgage Rates
- Condition of Property
- Location, location, location
Buyers' Market: The supply of homes on the market exceeds demand. Prices are stable or may be dropping.
Sellers' Market: The number of potential buyers exceeds the supply of homes on the market. Homes sell quickly, prices usually increase.
Balanced Market: The number of homes on the market is roughly equal to demand.
Once you and your RE/MAX Hallmark REALTOR® have determined your home's worth, you will determine the asking price. Our goal is a price that will attract a willing and able buyer, in a reasonable time, at the best price. The price should not exceed market value by more than 5%. If the price is set too high, it may deter prospective buyers. If the price is set too low, buyers may be skeptical and may offer less than the asking price.
COMPETITIVE MARKET ANALYSIS
You receive a written estimate of value based on the analysis of:
- Similar homes for sale now - this shows what homes we are competing against. Buyers compare your home to these homes.
- Similar homes recently sold - these tell us what buyers are willing to pay for this kind of home, in this area, at this time.
- Expired listings and similiar homes unsold for 90 days or more - illustrates problems of overpricing.