Nothing is more frustrating to a home seller than to have their home sit on the market without an offer. Selling a home is a big decision and an emotional one. By the time a homeowner determines the time is right to sell, they are ready to move. Besides, keeping a home show-ready is exhausting, so a listing that sits is frustrating.
The truth is there is only one reason why a listing doesn’t sell and eventually expires…price. It’s always the price. There is a price at which any, and all, homes will garner offers. Even the most run-down foreclosure will receive offers when priced low enough. Home sellers naturally want to get the best possible sales price for their home, but it’s important to be realistic. Present the house in the best possible light and offer it at market value.
So how can you determine the market value of your home? Talk to a local REALTOR®; they are the experts in your community. Only local real estate agents and appraisers have access to complete and reliable information by affiliation with the local Multiple List Service.
The market value of a property is merely the amount of money a buyer will pay for it. On the other hand, the assessed value of a home is based on a complex set of calculations to determine property taxes, and rarely the same as the market value. A professional appraiser determines the appraised value of a home, and that is the value your REALTOR® will be shooting for. If the house is overpriced and the appraisal comes in lower than the sales price, the buyer may not have the extra money to buy the home since the bank will only mortgage up to appraised value.
Past transactions reveal market value so your REALTOR® will use the sales prices of homes sold in your neighborhood during the past six months that are similar to your home. He/she will also take into consideration location, condition, and upgrades of your home and the comparable homes. Current homes on the market in this location will also be taken into consideration when determining market value.
There is nothing to be gained by pricing a home above market value, and sellers lose valuable time by trying to do this. A listing will always get the most attention when it’s new on the market. This is the time to create excitement and get offers. When the house is over-priced, it will also be over-looked and eventually, the listing expires.
Curious to know the market value of your home? Through my membership with the National Association of REALTORS® and Realtor Property Resource® (RPR), I can give you an estimated market value for homes anywhere in the United States. Simply send me a message in the box to the right. I’m always available via phone, text, and email too!