One of the most common questions that we’re receiving right now is how to determine the true market value of a property. In order to answer that, we have to establish a baseline.
What is Market Value?
A true market value is the price a buyer is willing to pay for your home.
So, ultimately all value comes back to what the buyer is willing to pay. But, how do we get to that number?
That’s where I come into play as a market professional.
In today’s world, everyone has a cellphone with the ability to plug in addresses and see the price of a home. But is that the right number someone would be willing to pay?
That’s Where Comps Come In
The reality is we have to look at the comparable sales in your area to help us determine how accurate that number is. As a real estate professional, what we’re going to do is take a look at the properties, ideally, that have closed in the last 90 days in your neighborhood. If we can’t get them in your specific neighborhood, then we’ll look at homes as close as possible to your home.
And we have to remember, very rarely do we find a perfect comparison. There’s always going to be a little bit of differences between your house and somebody else’s that will alter the value, even if slightly.
The goal is to find what price homes most similar to yours have sold for because that gives us a true estimate of what a buyer is ultimately willing to pay. That gives us the fair market value of your home.
Once we know that number, we can make price changes based on the differences between your home and those similar to yours.
Another Factor is the Market
Another thing we have to look at is what is currently on the market. A seller can ask anything they want for their house, but if a home is on the market and it’s not selling, that usually tells us the they’re asking more than what market value is.
As a Realtor, we’ve got to help you position your property with the right price to create the most demand and competition from buyers to give you the best market value for your home.
If you want to determine the value of your home, call us today. We would love to help you find out the value of your home as it sits today. Whether you’re wanting the information to possibly sell, refinance, or you just want to know – we can help. Just give us a call at (405) 631-2882.