Selling
Guide
Putting
House on Market
A Little Homework
There's No Place Like Home
Demand Sets Price
Sample NET SHEET
Financing Strategy
What is a Point?
Property Profile Folder
What Conveys?
Listing Agreement
Questions and Answers
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Demands
Sets Price
After conferring with the listing broker on market conditions, comparable
nearby sales and listings, and available financing, the home seller
will set the listing or "asking" price for the house.
A common definition of market value is: "What
a ready, willing and able buyer will pay, at a price a seller
will accept." Metropolitan area buyers are sophisticated.
They've already been shopping, and when they see your home they'll
be comparing features and financing.
There's a rule of thumb that says: "A house
priced more than 5% over market value discourages offers."
Buyers who can afford the price can get "more house"
for their money elsewhere. Buyers who cannot afford the price
simply won't look. This is why we say, "A house priced right
is half sold."
A
fair market value will be determined by comparing the property
with similar properties which have recently sold and (in some
cases) with similar properties currently on the market. Experience
in the industry has proven this "market analysis" approach
is more accurate than the "replacement cost" or "potential
rental income" methods.
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