Understanding Market Value


Market-sensitive pricing can be the key to maximum market exposure and, ultimately, a satisfactory sale. The existing pool of prospective buyers determines a property’s value, based on:

  • Location, design, amenities and condition.
  • Availability of comparable (competing) properties.
  • Economic conditions that affect real property transactions.

Factors that have little or no influence on the market value of a house include:

  • The price the seller originally paid for the property
  • The seller’s expected net proceeds
  • The amount spent on improvements

The impact of accurate pricing:

  • Properties priced within market range generate more showings and offers, and sell in a shorter period of time.
  • Properties priced too high have a difficult time selling.