Understanding Market Value
Most sellers, especially if they have not experienced a real estate transaction in recent years, do not have a clear understanding of the true value, or “market value” of their home today. When you decide to list and sell your home, here’s what you need to know about value:
What is Market Value?
- Assessed Value Is: County valuation for tax purposes – not an accurate measure of market value
- Appraised Value Is: A lender’s valuation for what they will loan a buyer who wishes to purchase your home
- Market Value Is: Simply, what a buyer is willing to pay for your property at the time it is listed for sale. It is not determined by you and what you believe your property is worth, or by the listing agent
What Impacts Market Value and How Is It Determined?
- What else is for sale in this price range at the same time
- The condition of your home
- How well your home “shows” compared to other available properties
- How well your home is marketed
What Does Not Impact Market Value?
- The original cost of your home
- Your cost to rebuild today
- Certain types of improvements
- Personal attachment
- What your friends, neighbors, and colleagues say it’s worth
- Probably not what on line websites tell you it’s worth – most use “averages” to assess value, with no understanding of local markets, so they are rarely correct
Can You Impact Market Value When Preparing to Sell?
Some things you cannot change, like neighborhoods, lot size, and overall home structure, but you can impact how your property is perceived by buyers, by making sure it is well maintained, make agent-recommended updates. Appropriate staging and professional photography makes a huge difference when marketing to buyers, and those homes always sell in shorter time frames and for more money. Experienced Integrity agents know what buyers today respond to, and are prepared to guide you every step of the way.