Market Value

 

The ABCs of Market Value

 

Listing your home at the right price can assure you of a quicker sale. Mershon Realty has a thorough understanding of market conditions and the factors driving both home prices and housing demand. If your home is priced too high, it may remain on the market indefinitely. When priced too low, you may not recover your real estate investment.

 

The Impact of Accurate Pricing

  • Properties priced within market range generate more showings and offers; they also sell in a shorter period of time
  • Appropriately priced properties make the best impression from the first day on the market

A Property’s Value is Determined by the Existing Pool of Potential Buyers

  • Availability of comparable and competing properties
  • Location, design, amenities and condition
  • Economic conditions that affect real property transactions

Factors That Have Little or No Influence on Market Value

  • Your expected net proceeds
  • Investments in upgrades or improvements
  • The price you originally paid for the property

How to Determine a Market-sensitive Price

 

You Have One Chance to Make a First Impression. The first day on the market generates the greatest number of online viewers. A Fair Price will attract showings for buyers who are sincere about considering buying your home.

 

A Comparative Market Analysis (CMA) Considers Similar Properties

  • Recently Sold houses show what buyers have actually paid for similar properties
  • Houses that are currently on the market will be competing for available buyers’ attention
  • Houses that have failed to sell will serve as an example of what not to do

Dangers of Over-pricing

  • Fewer buyers are attracted and fewer offers received
  • Marketing time is prolonged and initial marketing momentum is lost
  • The property attracts “lookers” and helps competing houses look better by comparison
  • If a property does sell above true market value, it may not appraise and the buyers may not be able to secure a loan
  • The property may eventually sell below market value

“I knew almost nothing about real estate—what to look for or what to avoid. When I decided I wanted to become a landlord and have a regular monthly rental income, Nancy Mershon was indispensable. She helped me find and procure an exceptional, affordable rental property, which needed only cosmetic repair. Her decorating and staging expertise were instrumental in getting the house rented in record time. I recommend Nancy to anyone looking for a highly professional Realtor with excellent negotiation skills and an eye for value.”

—HW Marsh, Winston-Salem, NC