Real Estate Thursday - Determining Value when Selling | Blogs
A Comparative Market Analysis (CMA) is essential to determine the value of residential property. Location and characteristics of the property are the key elements in determining value. Therefore, the basis for valuations is similar properties in your area.
The Following are a few things to keep in mind about pricing:
- Realistic pricing will achieve maximum price in a reasonable time.
- The market determines the price.
- The cost of improvements are almost always more than the added value.
- Houses that remain on the market for a long time do not get shown.
Factors that influence the value of your home:
- Market Conditions - Interest rate, Financing, Buyer Demands, State of the Economy
- Your Terms Offered as the Seller.
- Exposure - Broker Representation, Marketing and Ease of Showing
- Comparable Properties - Active/Currently on the Market and Sold/Recent Sales
- Property Features - Structural Integrity, Architectural Style and Floor Plan
- Your Motivation as a Seller.
Factors that have NO impact on the current value of your home:
- What you paid for it.
- Your investment in the property (such as baths or kitchen upgrades, etc)
- What you want to net from the sale
- What those outside the industry believe the property is worth.
Intelligent pricing is important. By pricing your property at market value, you expose it to a much greater percentage of prospective buyers. This increases your chances of a sale while ensuring a final sale price that properly reflects the market value of your home. Improper pricing may lead to a below market value sale price, or even worse, no sale at all. Your home has he hightest chance for a fruitful sale when it is new on the market and the price is reasonably established. A property attracts the most attention, excitement and interest from the real estate community and potential buyers when it is first listed on the market. Improper pricing at the time of initial listing misses out on this peak interest period and may result in your property languishing on the market.
What to have ready to list your home:
- Prior Year Tax Bill
- Survey or Mortgage Survey, if available
- Account Numbers for Mortgages
- 3 Copies of the Key to the Front Door
- A List of Repairs or Improvements You Have Made to the Property
- A List of Inclusions or Exclusions in the Sale
- Any Interior or Exterior Pictures of the Home That Shows Its True Beauty
- Declarations, Covenants, Deed Restrictions, if Applicable
- Utility Bills, Actual Monthly Costs or Monthly Budgets
- Information on Special Assessments, if Applicable
- Homeowners/Condominium Association Information, if applicable --- Amount, Company, Address, Contact Name, Phone Number
Tiffany Hampton is a Mom of 3, Community Activist, Social Media Adventurer and Successful Real Estate Agent with Century 21 Samia Realty. Have a real estate question or need, I would love to hear from you. Visit our real estate service sites www,BeReadyToBuy.com or www.C21SellsMaine.com. For more information about me or the Southern Maine Community please visit www.SouthernMaineLife.com or email Tiffany.Hampton@Century21.com.