CHAPTER 2 First Steps to Home Selling o Home Selling
Location! Location! Location! Location is the most crucial consideration in real estate and a major factor, if not the predominant one, in real estate pricing. Novice (and not-so- novice) home sellers alike must know the considerations that determine a home’s price. Setting the price at which to sell your home is not a simple formula, nor totally mathematical. Many elements factor into the decision. Throughout this book, you will read examples of similar and similarly situated houses that sold for very different prices, along with the reasons for the disparities. A calculated home value is not necessarily what you believe your home is worth. Recognizing this helps avoid overpricing, a major factor that leaves homes sitting on the market too long. Once a home sits on the market too long.... the potential buyers think that something must be wrong with the property. Then the price tends to go down, trying to chase a buyer that wants to ultimately offer even less for your property. Familiarity with the real estate terms market value, appraisal value, and assessed value can save disappointment and frustration, and allow the home seller to meaningfully engage in setting a home’s listing price. The most used definition of market value is “the most probable price a property should bring in a competitive, open market, under conditions requisite to a fair sale.” Essentially, this is a pre- negotiation opinion of what a house should bring in its local market, i.e., its geographical area, generally an area such as a 6
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