Understanding Market Value

Market-sensitive pricing can be the key to maximum market exposure and, ultimately, a satisfactory sale.

Buyers determine a property’s value based on these factors:

• Location, design, amenities and condition.
• Availability of comparable (competing) properties.
• Economic conditions that affect real property transactions.

Factors that have little or no influence on the market value of a house include:

• The price the seller originally paid for the property.
• The seller’s expected net proceeds.
• The amount spent on improvements.

The impact of accurate pricing:

• Properties priced within market range generate more showings and offers, and sell in a shorter time period.
• Properties priced too high have a difficult time selling.