Ashok ( Ash ) Patel
Broker
When you are listing your home for sale, the challenge of setting a price that is fully realistic and in line with the prevailing market values in your area will assist you in assuring that your home will be sold quickly and for the best price it can fetch in the market. When you properly set a price for your residential property, you are significantly increasing the probabilities that the offers you entertain will closely approach your asking price, as well as setting the stage for the possibility of attracting competing offers: the spiralling bidding over asking price which so many sellers dream of, but few actually ever experience.
Long term real estate statistics have proven that the best chances your property has of selling is in the very first seven weeks that it is listed for sale on the market. There is an invariable downwards slope to the prices a home will sell for the longer it stays on the market past seven weeks.
Understand The Local Market Dynamics
Knowing whether the market in your area is a Seller's Market, a Buyer's Market, or a Balanced Market is critical information that will guide you in determining the precise market value for your home. Although there are many reports issued with great frequency on real estate values, they cannot substitute for the knowledge, experience, and insight of a real estate professional who intimately understands the local market dynamics, and therefore in conjunction with other associated professionals such as appraisers, and careful analysis of comparable properties in your community, can arrive at a very accurate fair market value for your residential property.
Location, location, location is always the primary and most critical real estate aspect. Your residential property's proximity to desirable amenities and facilities, such as parks, schools, malls, recreational areas, and public transportation can make all the difference. In urban areas, there are cycles where particular neighbourhoods become "trendy" and thus the property values skyrocket. It is not unusual for two similar homes located just a dozen blocks apart to fetch a price that can vary by as much as 25%! Also keep an eye to the future. If there are developments planned for the area, that can have a very powerful effect on home pricing, whether positive or negative.
The Factors Which Govern Fair Market Value
There are many physical and structural factors which affect the fair market value of your home, and these include the size, age, style, layout, and general construction quality. Curb appeal is very important, so the shape, size, landscaping, and privacy of the lot can also be critical determining factors to home pricing.
The current condition of the home has a strong effect on the price it can fetch on the market as well. All of the major infrastructural aspects such as HVAC, electrical, plumbing and other critical systems must be in good operating order, and the cosmetic aspects of both the interior and exterior must be at their absolute best to maximize the market value.
