If you were going to sell your car, what would you do? Well, you would probably check to find out how similar vehicles to yours are priced. Then you would set your advertised price within that range.
What you would be doing, perhaps without knowing it, is determining the “market value” of your car.
Market value is simply what buyers today are willing to pay for a particular product.
When you decide to put your house up for sale, one of the first things you and your real estate professional will do is determine the market value of your property. That’s important to know because if you price your home too much above its market value, you probably won’t get any offers. Alternatively, if you price your property too low, it might get snapped up quickly but you’ll have left a lot of money on the table.
How does a real estate professional help you determine your home’s current market value?
He or she will look at a variety of factors, such as the desirability of the area, the features of your home, how well it has been maintained, renovations and other improvements you’ve made, and of course, its location.
Your real estate professional will also review what similar homes in your area have sold for recently – which is, perhaps, the strongest indicator of current market value.
Once you know the market value of your home, you can make an informed decision as to how to price it so that it will attract the right type of buyers and the best possible price.
Should you price your home high above its market value in the hopes that some unwary buyer will purchase it? Unfortunately, that rarely works.
The good news is, your property may be worth more than you think. One of the best ways to find out is to invite a good real estate professional to your home to do an assessment.