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.