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Pricing Your Home
Many factors
affect the market value of your property.
Fair Market
Value
The basic laws
of supply and demand greatly impact what a buyer is willing to pay for
property and the amount financial institutions or lenders are willing to
finance.
Fair market value
is defined as the likely price a ready, willing and able buyer is willing
to pay for a property when:
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The property is offered
for sale on the open market.
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The property is marketed
for a reasonable period of time.
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The buyer has a complete
understanding and knowledge of the property.
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Neither the buyer
nor seller is under abnormal pressure.
Determining Property
Value
The Market
The market approach
is based on the premise that a prudent person will pay no more for a property
than it would cost to purchase a comparable substitute.
Competitive
Listing and Sale Prices
To form an opinion
of value, an Alpha Omega Real Estate Professional will analyze current listing
and sale prices of similar homes in your area. He or she will consider
properties that have recently sold, are currently for sale, or were offered
for sale but did not sell. Although none of these properties is identical
to yours, only those that have a high degree of similarity are noted in
this report.
Comparative
Evaluation
The Alpha Omega Real
Estate Professional can prepare a detailed description of your property
and an estimate of the selling price range in today's market. This is known
as the comparative or competitive market value of property.
Staying Current
With Market Value
Once your property
has been listed, an Alpha Omega Real Estate Professional will continually
collect and review updated information to monitor the offering price. Our
observations may include:
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Professional opinions
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Industry (broker)
response
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Buyer reaction
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Current market conditions
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Competing properties
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Availability of financing
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Number of showings
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Length of time on
the market
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Interest rates
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Condition of the
property
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Seller motivation
Factors That Do
Not Affect a Property's Value
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What the owners paid
when they built or bought the property
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Some of the improvements
and upgrades the owners have made to the property
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The cash proceeds
the owners want or need from the transaction
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What friends, neighbors,
or relatives say a property is worth
Factors That Do
Affect a Property's Value
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Style, condition,
age, decor
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Location
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Time of year
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Property and neighborhood
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How quickly seller
needs to sell
Competitive Pricing:
The Pricing of Choice
The probability
of receiving an acceptable offer on your property and completing a sale
diminishes significantly when your asking price is higher than the current
market value.
Here are the
factors that will determine price range:
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Your property - its
strongest selling points
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The competition -
the asking prices of other homes for sale in your area
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The expired listings
- homes offered for sale that did not sell
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