Finding Market Value

A home's Market Value, simply put, is what a buyer is willing to pay and a seller is willing to receive for a property.

If a home is overpriced, fewer buyers will have interest in paying a premium.  The home listing will be more likely to take longer in selling and accumulate days on market.  The longer the time on market, the more a buyer will try to negotiate.

Studies show that homes that are overpriced tend to sell for LESS than homes priced at fair market value.

What is the best way to determine a fair price:  look at the past, present, and future... otherwise known as solds, actives, and pendings in MLS.  Similar homes give a good picture of what buyers have been willing (and not willing) to pay.  

A CMA or Comparative Market Analysis takes similar listed homes into account and gives you a good range for a price that would be expected to generate a successful sale.

Six Factors that do NOT Determine Market Value

1.  What you paid.

2.  What you need.

3.  What you want.

4.  What your neighbor says.

5.  What another associate says.

6.  What it would cost to rebuild your home today.

In the end, a buyer will not factor any of these items into their analysis of what he or she is willing to pay.