In estimating the fair market value of your property, we have carefully considered all relevant factors. Our Market Analysis uses the same variables that a professional fee appraiser utilizes: a combination of current market conditions, square footage, location, taxes, land size, property conditions, features and comparable sales. Please bear in mind that our Market Analysis is based on today's market and that appreciation and the economy change.
The following information is utilized in my analysis:
Public Records Data: This information, provided from county records, on your specific location is used to establish baseline information regarding lot size, square footage, number of bedrooms, baths, garage, etc.
Area Boundaries: i.e. Major streets, parks, etc., are utilized when searching for comparable properties.
Current Market Activity: The current market activity will help determine how much competition you can expect, how they are priced and how their features compare to yours.
Comparable Sold Information: Comparable properties sold within the last several months will tell you what recent Buyers have purchased, how much they are willing to pay for the area, size, features, etc. While none of these homes are exactly like yours in every detail, they do provide a basic reference and help determine the range of established value. Three solid comparables are needed to substantiate the price for the appraiser.
PRICING FACTORS
Location: In most instances a house cannot be moved. The pricing of your property must reflect its location...On a one way street...Next to an apartment complex, etc.
Terms: Pricing must reflect the lending terms available...Conventional loan?...FHA/VA qualify?...Assumption?, etc.
Market: Interest rates, competition and the economy combine to influence the "market" when selling your home. Pricing must reflect the current status of the market.
Condition: The upkeep and presentation is crucial in obtaining the highest value in any given market, at any given time. Pricing must reflect the property condition...Updated?...Age of the mechanics/roof?...Interior/exterior paint?, etc.
Price: This is the number one factor! A property is only worth what one person is willing to pay another person to gain ownership. Price must be in direct relationship to all of the above referenced items.
Over-pricing is a subject of concern. The following criteria should be given special consideration:
- Some potential Buyers won't even look, thinking it is out of their price range.
- In some instances it may encourage comparison shopping; looking at higher priced homes may convince the potential Buyer to bid on a different property.
- An appraisal is usually necessary; should the property not appraise, the Buyer will not be qualified for their loan and the contract could terminate. It is futile to price a property for more than it is worth.
- A property which remains on the market for an extended period of time tends to make potential Buyers think something is amiss.
- Some agents may be turned away from showing the property, thinking it is out of line within the market.
- Lengthens marketing time and can invariably result in a lower selling price than may otherwise have been obtained.
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