CHAPTER 2 First Steps to Home Selling
Location, Location, Location!
Everyone knows the phrase, and for good reason. Location is the single most influential factor in real estate value. But it’s far from the only one. Understanding what truly determines your home’s worth is the first step toward pricing it right and selling it successfully.
Understanding Value: Market, Appraisal, and Assessed
A home’s “value” isn’t a single number. Three distinct benchmarks help define it: • Market Value: The most probable price a property should bring in a fair, open, and competitive market. • Appraisal Value: A professional appraiser’s opinion of what a property is worth at a given time, often used by lenders when determining loan terms. • Assessed Value: The value local governments assign for tax purposes, which often differs from true market value. (In fact, about 60% of U.S. homes are assessed higher than their actual worth.) Recognizing these differences helps you avoid frustration and set a realistic, competitive listing price.
Determining What Your Home Is Worth
Setting the right price isn’t as simple as plugging numbers into a formula. Real estate values reflect a mix of tangible and
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