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