Contrary to popular belief, the following factors have no effect on the current value of your property: what you paid for your house; what cash proceeds you want (or need) from the sale; what your friends and neighbors say your property is worth.
Your property’s value is determined by several separate factors, including the following, over which you have no control: the physical qualities of your property (location, age, size of house and lot, floor plan and style); market conditions (interest rates and availability of financing, buyer demand, prices of recently sold properties, the state of the economy and seasonal demand); and the competition (the number of similar properties for sale, their prices, financing terms, location and physical condition).
Your house has many values—
One to the tax assessor, others to your lender and insurance company, and yet another value to you, the owner. Prospective buyers will also value it differently. It is what a buyer will pay, based on current conditions, which ultimately determines “market value”.
A professional Competitive Market Analysis is the best tool to determine the current market value of your property. It will focus on similar houses that have recently sold and those now on the market, the competition. It will also consider those which did not sell and came off the market.
Buyers do comparison shopping. The best price obtainable for your house will be determined by the market. Houses that do not meet the current competition in price and terms simply do not sell. In fact, they may even help sell the competition!
The price at which your house is marketed must attract enough attention among buyers and buyers’ brokers to generate showings and offers.
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603-526-4116
In the New London/Lake Sunapee area real estate market, or any market for that matter, overpricing a home in a buyer’s market is definitely not a good strategy for selling. Today’s buyers are very cautious about overpaying, are more discerning and are less likely to accept defects found on inspections. With the abundance of properties on the market and price reductions seen on a daily basis, buyers are taking longer to buy and are pickier about what they buy. Sellers should not aggressively price their house in anticipation of buyers making offers. Most buyers won’t waste their time offering on a listing over-priced for the market – especially when there are other choices. In fact, other agents will use your over-priced listing to help them sell the well-priced listings. In this changing market, sellers are no longer in the driver’s seat. Comparable sales from even a few months ago may not be applicable for today’s market. For best results, rely on your realtor for a realistic price assessment. [caption id="attachment_52" align="aligncenter" width="117" caption="Donna Forest, ABR"]
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