Determining Value

Factors that affect the value of your property:

Location
Location, Location, Location. Location is the most important factor in determining the value of your home. The location entails – schools, proximity to shopping, and tranquility.

Competition
Buyers will primarily calculate value based on properties that have recently sold in your area. Informed Buyers will perceive value based upon the selling price of comparable properties that have sold rather than the asking price of homes for sale.

Timing
Current market conditions are affected by the supply of homes for sale, interest rates, and the ability of Buyers to get financing.

Condition
Every aspect of the physical condition of your property affects the price and the length of time it takes to sell your home. First impressions are significant. Optimizing the appearance of your home is a prerequisite to getting the quickest sale and highest price.

 


Marketing

Marketing, including advertising and other promotion, will affect the number of Buyers that view your home. There is a positive relationship between exposure and price.

Price
According to the California Department of Real Estate, “fair market value is defined as the amount of money that would be paid for a property offered on the open market for a reasonable period of time with both Buyer and Seller knowing all the uses for the property with neither party being under pressure to buy or sell.” Pricing your home properly when first listed is the single most important factor in determining the length of time it will take to sell your home. The listing price should be based on a market analysis where similar properties for sale, in escrow, and recently sold are compared to your property, taking into consideration the fore-mentioned factors for “determining value.” Over-priced properties tend to lose momentum during the important first three weeks of the sale period, and will generate less interest and showings, which may have an adverse effect on the final sales price.