Your Homes Value
Being carried over the threshold. Baking cookies with the kids. Every holiday for the past eight years. Start counting the memories created in your home, and it may be hard for you set a realistic list price.
The actual value of your home, however, isn’t decided on the priceless value of cherished memories; it’s determined by the market. The Market Value is the amount that prospective buyers are willing to pay at the time you’re ready to sell.
The best way to judge market value and ensure you get the best price is to obtain a Comparative Market Analysis (CMA) from your listing agent. This analysis of homes in your area includes those that are currently on the market, expired from the market, pending a sale or already sold. Of course the best indicator of your home’s value is the sale price for similar homes in your area that have already sold.
The comparison is based on several factors, including the proximity to your home and the similarity of characteristics, such as lot size, square footage and number of bedrooms and baths. Since the goal is to obtain a balanced market view, you and your agent will look at four basic groups:
- Current listings to identify “The Competition”.
- Recently sold homes to indicate what buyers are willing to pay.
- Homes with a sale pending to point to current demand for this type of home.
- Expired homes to suggest what buyers are unwilling to pay.
While your agent will help you make sure you are taking into consideration the most appropriate details, be sure to avoid the urge to price your home based upon considerations that don’t affect market value, such as:
- How much money you need to purchase your next home?
- How much you paid for your home?
- How much you paid for home improvements?
- The value of a similar home in a different community.
- Area appreciation statistics.
- The cost to build the same home today.
Contact your agent to get a free, professional Comparative Market Analysis to find out how much your home is worth. It’s the first step to making sure your home is priced to sell!