The Market Approach assumes that a buyer will pay no more for a property than it would cost to purchase a comparable home. To determine the right price to sell your property first you much determine the property value. First, the real estate professional will analyze current listing and sales price of similar homes in the area. They will look at the homes that recently sold, are currently for sale, as well as those that were on the market but did not sell.
A Comparative Evaluation is when a real estate professional prepares a detailed description of the property and estimates the range of selling prices in the current market.
After listing your property, a real estate professional will continue to review new and updated information and monitor the asking price to ensure it is reasonable and competitive.
The factors taken into account include:
-Current market conditions
-Availability of financing
-Number of showings
-Length of time on the market
Factor’s that Do NOT Affect Property Value
-What the owners paid
-Some improvements and upgrades
-Cash proceeds desired
-What friends, neighbors, and relatives think it is worth
Factor’s that DO Affect Property Value
-Style, condition, age, decor
-Time of year
-Property & Neighborhood
-How quickly seller needs to sell
The probability of receiving an acceptable offer and completing the sale is considerably decreased when the asking prices is above the current market value.
Factors That Determine Price Range
-Your Property: Strongest selling points
-The Competition: The asking prices of comparable homes for sale in the area
-Successful Sales: The actual completed sale price of comparable homes in the area.
-Expired Listings: Homes put on the market that did not sale.