Market Value
Your house has many values to the tax assessor, your lender and insurance company, and to you. It also has what’s called “market value” to prospective buyers.
A Comparative Market Analysis (CMA) is utilized in the calculation of the best price obtainable however, this value can only truly be determined by testing the market and challenging the competition. In the end, it is the market that dictates the value based on current conditions, number of Home Buyers, etc.
Physical Qualities:
o Location
o Age
o Size of house & lot
o Floor Plan & architectural style
The Competition:
o The number of similar properties for sale
o Their pricing, financing terms, location and physical condition
Market Conditions:
o Interest Rates & availability of financing
o Buyer Demand (Market Status – buyers or sellers market)
o Prices of recently sold properties
o State of the economy
o Seasonal demand
Additional Factors:
o Time on the market
o Terms
o THE AGENT YOU SELECT TO MARKET AND SELL YOUR HOME!
Some factors that have no effect on the current value of your property:
o What you originally paid for the house
o The cash proceeds you want or need from the sale
o Opinions of your friends & neighbors with regard to your property value
DETERMINING THE BEST PRICE OBTAINABLE FOR YOUR HOME
Comparative Market Analysis:
To help determine a price for your home, your agent will prepare a Comparative Market Analysis (CMA). Buyers engage in comparison shopping and they will not pay more for a property than they could pay for another similar property. If your home is not priced in accordance with similar homes, you will not realize as many showings which will result in a delayed sale and ultimately a lower sales price. The CMA will use the following;
Recently sold properties
Reveals what buyers have actually paid for similar properties.
Currently for sale
Shows the properties with which your property will be competing for buyers’ attention.
Expired listings
Demonstrates what buyers are not willing to pay under current market conditions.
If you are interested in selling you home and would like to request a free, no obligation CMA please email or call us at 614.332.6984 and let us know how we may assist you.
