Broker's Corner: August 26

Posted By Allison VanderVeer @ Aug 25th 2017 2:17pm In: Local Market Insight


One of the big questions for sellers and buyers in the real estate market is that of value; what's this property really worth? Market value, by definition, is what a ready, willing and able buyer is willing to pay for the property. And, of course, what a seller is willing to sell for. When these two sides shake hands, and when the transaction closes, we have established market value -- historical value, it's called.

You'll hear me in a listing presentation talk about a 'rainbow of value'. The 'for sure' worth of a property is determined by that historical value, an average price that is set by similar properties that are recently closed sales. This establishes the lower end of the rainbow. The upper end is identified by similar properties that are currently for sale and have not yet sold. Somewhere in between and on this rainbow of value is where the property will sell -- the lower end established by solds (historical) and the upper end determined by those similar and currently for sale.

Pricing that you, the seller, and I, your broker, establish along that range is best decided by your motivation and any emerging market trends. If we price your property too low, we may miss an opportunity to increase your equity position. If we price you too high, your home could take a longer time to sell or we might miss the best part of a selling season while others around us sell.

The value of the real value is a timely sale that accomplishes your goals as a seller. It is not an exact science, though it's the best method I know for pricing. Call me if it's time for you to sell; our listing inventory is running low!

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