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What is Fair Market Value?
By Ann Smith,
Broker
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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Ann
Smith, Broker
Your Real
Estate Consultant…For Life! |
