What is the TRUE MARKET VALUE of your home?
The true market value of your home is based on these factors:
1. Recent sales prices of similar homes in your neighborhood
2. Competition - type, quantity, and quality of homes for sale in your area
3. Market value trends in your neighborhood
4. General economic climate including job market
5. Mortgage interest rates and rate trends
6. The location of your home
7. The condition of your property (subjective from buyer's point of view)
8. Special circumstances
9. Whatever a buyer is willing to pay! |
|
TIP:
Be wary of an agent that wants to "buy" your listing.
That is, he or she will list your home above market value to get you to sign a
listing contract. It may seem like a good idea to you at the time since you want
to make the most money you can for your house. But, this can backfire on you
in several ways...
WHY LISTING YOUR HOME ABOVE MARKET VALUE CAN BE DANGEROUS:
First of all, if you are asking too much then your listing will actually help to
sell the homes around it. Also, when your home takes a long time to sell and you
have to keep dropping the price, it starts to look stale, which makes prospective
buyers cautious. Even if you do successfully sell at an above market price, your
buyer will need a mortgage. The mortgage lender requires an appraisal. If comparable
sales for the last six months and current market conditions do not support your
sales price, the house won't appraise. Your deal could fall apart if you don't
renegotiate the price. What a hassle! |
|
