What determines the value of your home?
Fair Market Value is the price a willing buyer will pay and a willing seller will accept for a property that has been exposed to the market for a reasonable length of time, where neither party is under duress. In other words, if 3 other homes exactly like yours (exact same size, condition, and amenities) sold for $300,000 the Fair Market Value of your house would be $300,000.
How do you determine Fair Market Value? By finding sales of properties that are reasonably similar to the property. In a subdivision where there are a lot of homes that were built with the same floor plan it is relatively easy to find “comparable” sales. The problem is when there are no homes exactly like it, or there have been no sales of those homes in the last 6 months to a year. In this case, sales of properties that were similar, but not exact, are used with adjustments for differences in condition, amenities, square footage, and other factors that affect the value.
Let’s take a look at the main factors to consider in determining the value of your property:
Location is the single most important factor in determining the value of your home.
Prospective buyers compare your property against competing properties. You are competing with every other home that is currently for sale: new and preowned, those listed with agents and those trying to sell themselves, in your area and other areas. Buyers will perceive value based upon properties that have sold or are available in the area.
Property values are affected by the current real estate market. As the real estate market cannot be manipulated, a flexible marketing plan should be developed which analyzed the current marketing conditions and individual features of the property.
The condition of the property affects the price and speed of the sale. As prospective buyers often make purchases based on emotion, first impressions are very important. Optimizing the physical appearance of your home will maximize the buyer’s perception of value. If buyers have a choice of two comparable properties similar in price, they will choose the one in the best condition.
Pricing your home properly from the beginning is an important factor in determining the length of time it will take to sell your home. Reviewing your home marketing plan will assist you in determining the best possible asking price. If buyers have a choice of two comparable properties similar in condition, they will choose the one that is less money.
If you would like to know the value of your home, and discuss the options with a professional, contact Dallas Luxury Realty: (214) 754 7040.