Leon Martin
Phone: (519) 669-5426 Ext 

Mobile: (519) 503-2753

Determining the Market Value of your Home

MARTIN, LEON: Determining_the_market_value_of_your_home.jpgOne of the most difficult aspects of selling your home is determining the asking price. If you price your home too low, you will cheat yourself out of money that you could have earned through the sale. Conversely, if you set the price too high, potential buyers may bypass it in favour of more reasonably priced homes. This can have an adverse affect, leaving your home on the market for too long, resulting in an unwarranted bad reputation. The object is to choose a price that is neither too high, nor too low.  Once the “For Sale” sign has been hammered into the lawn and the new listing appears, interest will soon follow. It is critical that you establish an asking price that is both accurate and fair. Since this is a very complex procedure, you will want the guidance of a trained professional.  

What is market value?

Your home will be evaluated in a number of different ways, all of which help determine its market value. Your insurance company will establish your home’s replacement value, or the cost to rebuild your home should disaster strike.

Your financial institution will hire a professional appraiser to ascertain the lending value of your home. This price represents the amount the lender would expect to receive if they were forced to liquidate the property. This value is often conservative.

Market value is the amount or price a willing buyer and a willing seller agree upon if they are not under duress. It is the price that your home should sell for in the current market. It is influenced by social and political factors, as well as the economy. Your home’s fair market value also depends on its location, how it was constructed, its condition, the building and lot size, and the prices of other homes that have been recently sold in your neighbourhood.

The price you choose to put in the Listing Agreement will be based on its fair market value, but will also be influenced by other factors. These include: the tempo of the market (is it slowing, or strengthening?), confidence in the economy, and competition within the market (how many homes there are up for sale). Ultimately, it is the market that establishes the value of your home.

Please keep in mind, offers will likely be below your asking price – this is normal. You may have to negotiate your final sale.

“I can guide you through the complex process that helps you determine your home’s fair market value”.







 

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RE/MAX Solid Gold Realty (II) Ltd., Brokerage
3 ARTHUR STREET SOUTH
ELMIRA ON  N3B-2M4
(519) 669-5426
Real Estate License # 4714589