How Much Is Your Home Worth?

     Seller’s want the best possible price and terms for their home.  Market conditions and interest rates contribute to how much a seller can get for their home.  The goal is to get the best price and terms during the marketing window.

     But… home selling combines science, marketing, negotiation and art.  There are  no certain conclusions.  Every transaction is different.  The listed house does not exist in a vacuum but rather in a complex system of influences that impact the sale.  Sellers can optimize their potential by preparing their house for sale and doing some of their own research.

     In real estate the concept of value is the price at which property would change hands from a willing, unpressured seller to a willing, unpressured buyer.  There is the price a seller would like to get, the price a buyer would like to pay and the point of agreement that results in a sale. 

Some key concepts are important to considering home value:

• The value of a house relates to the value of other houses in the same local area.
• Sale price is influenced by supply and demand. A growing area with an expanding job market and limited housing will  result in a rise in prices.  An area where jobs are being lost and people are moving away with plentiful houses will experience a price decline.
• Seller motivation will influence sale price.  A seller who needs to sell quickly has less power in the marketplace than one who can afford some time.  It is best, but not always possible, to negotiate from a position of power.
• Sale price is not the only thing.  There are many other terms that influence the desirability of an offer.  For example, an offer of $200,000., with a 90 day close and loan approval required  may be less attractive than an all cash, 15 close at $190,000. 

     To determine what your home is worth you should do some research yourself, as mentioned in detail, in a previous post and consult a Realtor.  I have on occasion heard the offhand remark, “Oh, the Realtor just wants to price it low to get the quick sale and some money.”  If that is the way you feel about your Realtor you should find a new one.

     Your Realtor should be someone you know, like and trust.  You should be able to communicate easilyand have confidence in their ability.  Your Realtor will prepare a Comparative Market Analysis.  If you disagree with the list price range in this report you should feel the ease to speak freely.  The seller sets the list price not the Realtor but it is good if it is the result of an frank review of sold properties in a collaborative environment.

     So, how much is your home worth? A  house is worth what a willing, unpressured seller is willing to sell it  for to a willing, unpressured buyer.  One of the goals when listing is to set a list price that will attract buyers because it reflects an accurate consideration of the prevalent market forces at the time.  The setting of the list price is not necessarily what sells the house.  The reaction of the market to the list price is the  key, it  either brings in a buyer or it does not.  

      In ending, if you do your research and connect with a Realtor that you know, like and trust you should be able to set a list price that attracts buyers in the form of showings.  If you are not getting any showings and you  are in a price range that is active in the market you need to keep open about revisitng the list price in a timely manner.

     Only a few years after a sale people often can’t remember the exact price. Was it $210,000 or $215,000? But, they know if they were able to move on with their lives to new things.  It helps to remember, that you are not only selling a house,  you are headed somewhere in you life. 

Because it matters…

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