| y"> | | | | Once these questions have been answered, the |
| If you are considering putting your single family home | | | | realtor will pull up comparables [comps] of similar |
| on the market or are looking to buy a home already | | | | homes in the neighborhood. These price comparables |
| listed, likely you are familiar with the term "market | | | | include homes that recently sold as well as homes |
| value" and how it pertains to home prices. If you | | | | currently on the market. From there, she will come |
| aren't certain what the term means then it is | | | | up with a price that is best suited to move your |
| imperative that you understand what market value is | | | | home within a reasonable amount of time, usually a 1 |
| otherwise you could be selling your home at a price | | | | to 3 month period. |
| that is too high or paying too much for a home that | | | | If the home doesn't sell within that timeframe, then |
| isn't worth the asking price. For simplicity's sake, let's | | | | likely it is overpriced. If it sells very quickly, it could be |
| examine how you can obtain the market value for | | | | that the home was under priced. However, realtors |
| your single family home. | | | | are trained to seek the highest possible price when |
| Some people confuse a home's assessed value with | | | | determining market value, therefore a quick sell isn't |
| its market value. The assessed value is what the tax | | | | always indicative of a low price. Quite simply, the |
| authorities have determined to be the home's worth | | | | right buyer at the right time may have stepped |
| while the market value is a price determined usually | | | | forward to purchase the home. |
| by a realtor who examines recent home sales and | | | | If you are planning to list your home in the near |
| current market listings and conditions. These two | | | | future, contact at least three realtors and ask them |
| values could be far apart especially if a tax | | | | to give you a free market analysis. This analysis will |
| reassessment hasn't been accomplished in awhile. | | | | include their market value price which is usually not a |
| When a realtor arrives at a market value figure she | | | | specific price, but a rough estimate based on |
| bases that number on the answers she obtains to | | | | formulas they use. For example, a realtor may say |
| the following questions: | | | | your home's market value is between $329,000 and |
| What type of neighborhood is the home in? Is it near | | | | $349,000, a bit of a spread but information you can |
| the central business district, on a highway, or far | | | | use and compare with the other market analysis's. |
| away from the town center? Location, location, | | | | Finally, when you are ready to list your home for |
| location is a familiar term and it is a chief determinant | | | | sale, go with the market value that has been |
| in crafting market value. | | | | recommended by the realtor you have selected. The |
| What is the home's condition? Is it new or older? If | | | | price can be dropped quickly if no interest is made |
| older, has the home received proper maintenance or | | | | within the first week or two, but likely your realtor's |
| is there work yet to be done? A home needing | | | | market value price is very close to what offers are |
| repairs will have a lower market value than a home | | | | being tendered for your home. |
| that is in pristine condition. | | | | |