| To some extent, doing a little research on what | | | | information, not all Agents are created equal when it |
| homes are selling for in your area puts you ahead of | | | | comes to interpreting that information. |
| half of the homeowners in any particular market. | | | | Fair Market Value is the Key to Success |
| Many homeowners base their assumptions of their | | | | It is absolutely imperative that you price your home |
| home's value solely on factors that have no real | | | | at Fair Market Value from the beginning of the listing. |
| merit. They may look at things like: The Tax | | | | This will ensure that you will sell your home for the |
| Assessed Value, "What I heard Sally got for her | | | | highest price in the shortest amount of time. |
| home down the street", "What Uncle Joe got for his | | | | Often, 80% of the effectiveness of marketing a |
| home across town", or many other factors . . . none | | | | home is linked to where you price your home from |
| of which really have a solid foundation. | | | | the start. Additionally, the first offer you receive on |
| What most real estate Agents and Brokers do, which | | | | your home is usually your best offer. The amount of |
| is similar to the process of looking at homes in your | | | | time it takes for you to receive that first offer will |
| area, is prepare a Comparable Market Analysis (some | | | | vary greatly depending on how close your price is to |
| call it a Competitive Market Analysis). What they | | | | Fair Market Value. |
| have access to, which you do not, is the entire | | | | Fair Market Value is not:o What another Agent says |
| database of homes in your area that are for sale and | | | | a home in your area is wortho What your neighbor |
| listed in the Multiple Listing Service (MLS). They have | | | | says his home is wortho What you think you need |
| to pay subscription fees, often very high rates, in | | | | to make from the sale of your homeo What you |
| order to have access to that information; but you | | | | want to put in the bank from sellingo What you paid |
| can bank on the fact that every active and licensed | | | | for the property last year |
| Agent in your home market has direct or indirect | | | | Buyers and Sellers Determine Value...Together! |
| access to this database. | | | | The value of your property is determined by what a |
| With this information, they can establish a good | | | | buyer is willing to pay and you (the seller) are willing |
| range of value for your home. They'll look at homes | | | | to sell for in today's market. That's the true Fair |
| that are for sale, homes that have a sale pending, | | | | Market Value of your home. |
| homes that have sold, and homes that have not sold. | | | | Today's buyers have all the information that you |
| Understanding the information they have access to | | | | have. They will base their offer on how your |
| gives you insight into how they might calculate or | | | | property compares to other sold properties in the |
| estimate a fairly good Fair Market Value for your | | | | area. They will evaluate your home against the |
| home. What you have to understand, though, is this: | | | | others and will compare the cost versus the value. |
| even though they all have access to the same | | | | |