Our Insight on What it IS and What it’s NOT…
We as agents along with our clients use the term “market value” in our real estate discussions multiple times a day. But when we sit down to determine the best course of action with regard to properly pricing a home, it’s natural for our sellers to want the highest price possible and it’s our job to bring a ready, willing and able buyer to the table. In order to bring these two goals together, we want to share some considerations when setting a listing price. These are truly tidbits from our trenches of daily real estate life.
The Market Value of your Home Is Not:
What you have invested in it
What you need to get out of it
What your last appraisal says it is
What you heard your neighbor’s home sold for
What the tax valuation says it’s worth
What the “zestimate” says it’s worth
Based on memories & wonderful time spent there
Based on prices of homes you are looking to buy next
The Market Value of your Home Is:
What a buyer is willing to pay today
Based on today’s overall real estate market
Based on your competition
Based on today’s financing options
Based on today’s economic climate
Based on the buyer’s perception of the property overall in comparison
Based on location & condition
Based on sold comparable properties
As sellers, you do have control of your listing price as well as the condition of your home and ease of access for showings. You do not however control the market conditions, nor can you be privy to the motivation of competing property owners.
A couple of important takeaways from this…first and foremost, we as your agents are your advocates and your consultants. We share the same agenda. With that said, there are a couple of indicators of an overpriced property:
#1: Agent Elimination. They are not previewing and if they do, they are not opting to show their clients.
#2: Buyer Elimination. If your home is being shown but with no results, these prospects are finding better value elsewhere.
One of our Cashman Partners mantras…”Price is an objection in the absence of value.”