Most if not all homes will sell for market value given the current market conditions. So what is market value? Market value as derived from the common comparable sales approach compares a property to other properties with similar characteristics that have sold recently. This method takes into account all the features of the property, for example, its size, the number of bedrooms, and the effect that individual features have on the overall property value. Merritt Real Estate Professionals are committed and trained in the fine art of developing a market value for your property. We are also committed to educating each and every one of our clients to ensure that they are knowledgeable in regard to their large financial assets, their home. The process for finding the market value of your property can be summarized in three steps; Collect the Info, Discover other Homes, and Analyze the Data.
Step 1. Collect the information for the land, home, and any buildings on the property. Many of these items may already be known but typically your local county auditor should have a record of the general statistics for your home. Keep in mind that typically appraisal standards are used to determine if a room is a bedroom and what square footage is included in the home and what is considered additional square footage such as a finished basement area.
Acreage, road frontage, convenient or desired locations, and the overall lay of the land and views are key features of the property's land features. Access and functionality of the utilities to the home area are also crucial amenities. Bedrooms, Bathrooms, square footage, garage size, foundation, heating, and cooling are just a few of the many elements of a home that must be considered when collecting data. Outbuildings and additional garages can add to the overall value of a property and information such as the size, condition, utility additions such as heat, and possible uses should be noted.
Step 2. Discover other homes that have sold in the area. Using the information collected about your property for the land, home, and additional buildings, begin looking for other properties that have recently sold that have very similar characteristics. There will be subtle differences with each home however try to find the closest comparable property to your own. By analyzing the sale price and gauging the differences between each sold property and sale price, a general value will start to develop.
Step 3. Analyze any homes that are similar that have been on the market, expired listings, and are currently on the market. Properties that were previously on the market and recently expired that are similar to your home can possibly give you a good marker for what price may be too high, after all, most homes will sell very close to market value and if they are priced too high, they may not sell. Another great source of value and pricing can come from homes that are currently on the market and similar to yours. Lay out all the for-sale properties and begin bracketing them based on what your has to offer and what theirs has to offer.
At this point we have collected homes that have sold and gauged their value, homes that have expired due to a high listing price, and for-sale properties that we will be competing with. Keeping your asking price lower than the expired homes, around the sale prices, and in the middle of the active properties can give you a general idea of the value or asking price. The market never lies, after all the market produces the numbers that reflect what a buyer has already paid for a home.
Most homes will sell for around market value. Market value is based upon real data that reflects what a buyer will pay for a home. Accurate data collection is key to developing an accurate value, your data out is only as good as your data in. Merritt Real Estate Professionals are committed and trained in the fine art of developing a market value for your property. Our comprehensive CMA process and report were developed to provide the most accurate form of determining the value of your property. Connect with Merrit to set up an appointment to get started with a simple walk-through of your property.