What is Fair Market Value?
By Ann Smith

You’ve lived in your home for five years and have painted a few rooms…and now you’re wondering why the house isn’t selling when you’ve listed it for the same price as the one across the street, which is identical in size. Or perhaps, you’ve doubled the square footage of your home and are hoping to double the asking price as well.

Take note…pricing your home is all about location, location, location – and of course, what the current market bears in your area. If you haven’t kept up with neighbourhood standards, or if you’ve over-compensated with the reno work, you could be in for a disappointment.

When it comes to setting the price, you have to be careful not to set it too low or too high. After all, the right price attracts the right buyer.

Setting a price too low means you could be missing out on thousands of dollars – but it could also mean a very quick sale. On the other hand, setting the price too high will eliminate many potential buyers.

Buyers shop around and see what’s available in their market range. But it’s the Realtors who know the neighbourhood trends and what the buyers are looking for. They know what the competition is and how your home shows in comparison.

Your Realtor will perform a Comparative Market Analysis using extensive data available through the Multiple Listing Service. No two homes are identical and prices can fluctuate quickly depending on market influences.

Your home will be compared to recently sold homes in your area and adjustments are made for varying factors including the home’s condition, number of upgrades, size of home and yard, number of bedrooms, nearby amenities, etc.

You can be confident that the suggested asking price your Realtor determines is a fair market price. And by pricing right, your home will sell quicker in any market.

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