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Blog - February 2019 - Determining Property Value

Determining Property Value When Selling Your Home 

This is a particularly important topic as the market from 2017 to 2019 has changed significantly. 

You love your house. After all, your home was the one constant: it set the stage for many family events and cherished memories. And although the house no longer suits your needs, there is a part of you or your partner that is reluctant to part with it.
For many, this kind of emotional attachment and other factors unrelated to the home’s true market value end up influencing sound judgment when setting the asking price for a home.
To let any emotion (be it nostalgia or financial desire) drive up your asking price is a mistake that can end up costing you big in the end. Remember, the buyer doesn’t know about you and the memories you associate with the house whether you have recently built it or lived in it for years.  For the most part, they aren’t interested in your memories. They just want to find a home to call their own and to start creating their own family memories.

DETERMINING THE RIGHT HOME PRICE IS MUCH MORE A SCIENCE THAN AN ART
 
Think of it this way: the price for your house has already been established by the real estate market. There is a relatively narrow price range that buyers will consider for a particular home, with particular features, in a particular neighbourhood. The trick is in determining what that secret number is. Set the price too high, and your house is passed over. Set it too low, and you stand to lose thousands on the sale.

Factors that influence the desire to overprice:

  • Attempting to recover money invested in renovations and improvements
  • Desire to use profits to purchase a higher-priced home elsewhere
  • Original cost of the house was too high
  • Lack of housing market information
  • Building bargaining room into the price
  • Adding on for perceived emotional value

The benefits of pricing right:

  • Your property sells faster, because it is exposed to more qualified buyers.
  • Your home doesn’t become stale and lose its marketability.
  • The closer your asking price to market value, the higher the offers you’ll receive.
  • A well-priced property can generate competing offers.
  • Real estate agents will be enthusiastic about presenting your property to their buyers.

How is the market value of my property determined?

Enter your Royal LePage real estate agent. Your agent is an expert in the local real estate market, and will give you the facts you need to know to make an educated decision on asking price.
Your agent will prepare a Comparative Market Analysis (CMA) for your home based on the most current housing market information. The CMA will show you current listings, recent sales and expired listings (useful to check, because expired listings often indicate a house that was either overpriced or poorly marketed).

TOGETHER, YOU AND YOUR AGENT WILL ESTABLISH A COMPETITIVE LIST PRICE FOR YOUR HOME BASED ON THE FOLLOWING: 
  • Location
  • Size
  • Style
  • Condition
  • Community amenities
  • Financing options
  • Housing market conditions (Is it a buyer's or a seller's market?)
Once you’ve achieved a realistic sale price (along with a wise marketing strategy prepared by your agent), you can expect to sell your home for the best possible price in the least amount of time.

Adapted from : http://www.royallepage.ca/en/realestateguide/selling/index.aspx