Determining Market Value
How does a Realtor® determine the market value of your home? The truth is that your Realtor® does not determine the value of your home - the market does. More specifically, the person who finally buys your home ultimately is the one who has determined the value. When a Realtor® determine a home's value, what he or she is really doing is estimating the price that it will finally sell for.
There are many factors that go into an estimated market value of a property. The major factors are:
- Location - usually the biggest factor affecting value
- Size and floor plan of the property
- Number of bedrooms
- Number of bathrooms
- Condition of house
- Improvements and amenities
- Size, features and usability of lot
- Financing - what financing is available?
There are some things which would seem to affect a property's value, but which in practice do not. These things include:
- The price of the property the last time it sold
- The amount you need to get out of closing
- The amount invested for remodeling and repair
- What the property have been worth in the past
A very important thing to consider is the thinking of the buyer - and it is the buyer, ultimately, is the one who sets the final price. The buyer is thinking:
- I don't want to pay too much
- I want a good deal
- I don't want to pay extra for features I don't value
- I don't want to have to put a lot of work into the property
You need to get the very best dollar out of your property that you can. A great way to make that happen is to make sure your property is at its best. Homes that feel sharp, clean, and fresh have a distinct advantage over those that do not.
What is the fastest way to sell your house? The answer is, simply, price it appropriately. Working with a Realtor® is a great way to determine the right offering price - and then to sell it quickly at that price.
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