condition, and current supply and demand.
Market value is what a home is expected to sell for in a competitive market based on features, benefits, and current trends. Your personal opinion of your home’s worth may exceed what buyers—or lenders—are willing to pay. Buyers and sellers also see value differently. You may love your mature trees; a buyer may see nothing but raking. You may think a new roof adds price; buyers simply expect the roof to be sound. Proximity to schools, transit, and medical centers can increase value for some buyers but not others. Buyers look for the right deal, but there are limits to what they’ll pay and what a bank will finance. Strategic pricing is your best weapon.
Pricing Example
Imagine a homeowner whose property has a market value between $1.4M and $1.5M. Inventory is high, and they’re deciding how to price.
1. “Leave Room for Negotiation” Approach
Price at $1,550,000. This stretches the market value and often backfires—buyers lose interest, and competing homes suddenly look better. Slow sale, low traction.
2. “Price It According to Worth” Approach
List at $1,450,000, the midpoint of market value. Buyers will group it with similarly priced properties and assume they can take their time.
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