Determining Value

Determining Value

The Role of a Salesperson in Pricing

  • There is no “exact price” for real estate.
  • What I think your home is “worth’ doesn’t matter
  • The market determines value.
  • Together we determine the price.
  • I will show you a range of prices being paid for homes in your area.

who controls what

Principles of Evaluation

  •       Cost: The amount paid
  •       Price: The amount asked
  •  Value: Worth to someone
  •  Market Value: Appeals to many buyers and causes a sale within a reasonable time

How Buyers Determine Value

  •        When you bought this home, how did you establish value?
  •        By comparing it to others for sale at the time?
  •        Buyers still determine the value of a home by comparison shopping.
  •        When you choose your price, you choose your competition.

The Price Derivative

I’m going to ask you to imagine…this is no longer your home. You have actually jumped forward in time and you now live in the home and the neighborhood where you plan on moving to next.

About My CMA

  • Comparablesinclude sales from all real estate agents and companies
  • I check public records in addition to MLS
  • The best measure of value is sold listings
  • Active listingsdemonstrate supply and competition
  • Withdrawn/expired listings usually demonstrate an overpriced listing.