| So, what is my home worth? That's the most | | | | high rates) in order to have access to that |
| common first question that you might have asked | | | | information. You can bank on the fact that every |
| yourself when you decided to sell. | | | | active and licensed Agent in your home market |
| You might have even gone across the street (or | | | | has direct or indirect access to this database. |
| a block over) and looked at what homes are | | | | With this information they can establish a good |
| selling for in your area. This may have given you | | | | range of value for your home. They'll look at |
| a good ballpark figure, but should never have the | | | | homes that are for sale, homes that are pending, |
| final say on what you base your decision on. | | | | homes that have sold, and homes that have not |
| The problem with basing your price figure (for | | | | sold. |
| your home) on values you find for homes in and | | | | Understanding the information that they have |
| around your area (that are for sale) is that you | | | | access to gives you insight into how they might |
| are putting your trust solely on the fact that the | | | | calculate or estimate a fairly good Fair Market |
| Agents that priced the homes you looked at, | | | | Value for your home. What you have to |
| know what they are doing. | | | | understand though is this, even though they all |
| What you may not have considered is that the | | | | have access to the same information, not all |
| Agents who priced those homes may have priced | | | | Agents are created equal when it comes to |
| them where they are just so they could appease | | | | interpreting that information. |
| the homeowner. They may expect to come back | | | | Fair Market Value is the Key to Success |
| to the homeowner 2 or 3 times asking to lower | | | | It is absolutely imperative that you price your |
| the price and they don't mind waiting. Why should | | | | home at Fair Market Value from the beginning of |
| they? It's not their house for sale! | | | | the listing. This will ensure that you will sell your |
| Not All Listing Prices are Equal | | | | home for the highest price in the shortest amount |
| The problem with the | | | | of time. |
| price-high-maybe-we'll-get-lucky price scheme is | | | | Often 80% of the effectiveness of marketing a |
| that the amount of time to sell the home can be | | | | home is linked to where you price your home |
| several times longer than a home that was priced | | | | from the start. |
| right in the first place. | | | | Additionally, the first offer you receive on your |
| So, is a high price more important to you than | | | | home is usually your best offer. The amount of |
| selling your home quickly (or even a reasonable | | | | time it takes for you to receive that first offer |
| amount of time)? | | | | will vary greatly depending on how close your |
| Not All Agent Valuations are Equal | | | | price is to Fair Market Value. |
| To some extent, just by doing a little research on | | | | Fair Market Value is not: |
| what homes are selling for in your area puts you | | | | What another Agent says a home in your area is |
| ahead of half of the homeowners in any particular | | | | worth |
| market. Many homeowners base their | | | | What your neighbor says his home is worth |
| assumptions of their homes value solely on | | | | What you think you need to make from the sale |
| factors that have no real merit. Things like: Tax | | | | of your home |
| Assessed Value, "what I heard Sally got for her | | | | What you want to put in the bank from selling |
| home down the street", "what Uncle Joe got for | | | | What you paid for the property last year |
| his home across town", and many others. None of | | | | Buyers and Sellers Determine Value. . .Together! |
| which really have a solid foundation. | | | | The value of your property is determined by |
| What most Real Estate Agents & Brokers do, | | | | what a Buyer is willing to pay and you (the Seller) |
| which is similar to the process of looking at | | | | are willing to sell for in today's market. That's the |
| homes in your area, is that they do a Comparable | | | | true Fair Market Value of your home. |
| Market Analysis (some call it a competitive | | | | The buyers of today have all the information that |
| market analysis). What they have access to (that | | | | you have. They will base their offer by comparing |
| you do not) is the entire database of homes in | | | | your property to other sold properties in your |
| your area that are for sale and listed in the | | | | area. They will evaluate your home against the |
| Multiple Listing Service (MLS). | | | | other's comparing the cost verses the value. |
| They have to pay subscription fees (often very | | | | |