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Market Price - what it is, and isn't

Posted by terriks (My Page) on
Thu, Feb 24, 11 at 13:10

I found this list, and thought it was a good reminder of what Market Price is, and isn't:

The Market Value of your home IS NOT:
* What you have in it
* What you need out of it
* What it is appraised for
* What you heard your neighbor's house sold for
* What the tax office says it is worth
* What it is insured for
* Based on memories and treasures
* Based on prices of homes where you are moving

The True Market Value of your home IS:
* What a buyer is willing to pay for the property - TODAY
* Based on today's market
* Based on today's competition
* Based on today's financing
* Based on today's economic conditions
* Based on the buyer's perception of property condition
* Based on location
* Based on normal marketing time

As a Seller you control:
* The price you ask
* The condition of the property
* Access to the property

As a Seller you do not control:
* Market conditions
* The motivation of your competition
* Value


Follow-Up Postings:

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RE: Market Price - what it is, and isn't

True. Most especially - "What the tax office says it is worth ".

In most areas right now assessments are well over actual fair market value. In some areas they are obscenely overvalued.


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RE: Market Price - what it is, and isn't

It's too bad that list isn't handed to ever seller before they list. It might keep a few from making some costly mistakes.


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RE: Market Price - what it is, and isn't

I don't know. The things is the list are, well, basic. I certainly knew them well before I listed my current house, or the house before, or the house before that. I've never had much difficulty before last year of figuring out the market price. It has been much more difficult in the past year even when efforts are made to apply the above.


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RE: Market Price - what it is, and isn't

I'm a current potential buyer. In my market, there are a ton of sellers that could benefit from reading the first post. Some agents too.


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RE: Market Price - what it is, and isn't

I think this one is the hardest for people as we often see it posted on here:

"What you need out of it "

I understand people don't want to loose money or doesn't have money to bring to the table, but it doesn't matter if you have to sell.


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RE: Market Price - what it is, and isn't

Knowing this in your head and actually applying it are two different things. People need to see it in black and white so it goes from the back of their mind to the front. Having been apart of this forum for awhile I've seen a large number of folks who come thru who just don't get it. They truly believe that they should get out of their house every nickel they put into it and then some. They come here thinking the bad ol' RA is the problem when really it's them. They aren't looking at selling as a business deal. They get caught up in out dated thinking.


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RE: Market Price - what it is, and isn't

I would change one word.
From
"Based on the buyer's perception of property condition"
To
"Based on the buyer's perception of property desirability"

A home in poor condition can be very desirable. A perfectly maintained house with unused appliances can leave a buyer cold.


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RE: Market Price - what it is, and isn't

"A perfectly maintained house with unused appliances can leave a buyer cold."

What does that mean?? Why??

Jane


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RE: Market Price - what it is, and isn't

I mean that a house can be in perfect condition, with brand new appliances and granite counters etc, etc, but if buyer just doesn't like the floor plan, or if the perfectly painted ceilings just aren't high enough or if there is no perfect lovely corner in which to place the piano, or -- well, you get the picture. I didn't mean to say that new appliances or perfect maintenance are a negative. Only that a home can have them and still not be desireable to a given buyer.

Or, to see it another way, a poorly maintained addition could be desireable for a buyer who wanted to tear it down to make room for a patio and pool. In this case, poor condition would be more desirable.


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RE: Market Price - what it is, and isn't

Got it!

Jane


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RE: Market Price - what it is, and isn't

I would add to "What The Market Value of Your Home is Not": "--the sweat equity you put into it and the toll on your life doing things like restoring all that gorgeous woodwork cost." **SIGH**


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