How is price determined?  Bruce and Rob are ready to assist you and to answer this important question.

Determining a property's market value is a complex procedure that involves cooperation between the Realtor and the Owner of  the property.  In every real estate transaction, all parties are concerned that the property involved be sold for a fair price.

The methods used to determine the price for your property are:

Market Data Approach.  The subject property is compared with other similar properties that have sold (comparative) and are now for sale (competitive).

Cost Approach.  The cost to rebuild is calculated and adjustments are made for factors such as age and condition.

Income Approach.  The property's income and yield determine the price.

As a general rule, we place primary emphasis upon the Market Data Approach because it is the most accurate reflection of the current real estate market.

The method we use to determine a listing price by the Market Data Approach is the Comparative and Competitive Market Analysis (CMA).

Defining Market Value:  "While a large number of sales of properties have been considered, only those believed to be especially pertinent are noted here.  We have related them to the subject and have considered factors influencing their value.  We consider the data adequate and under these circumstances, they are a valid support to the conclusions indicated."  ~ Bruce Larson

Purpose of a Comparative Market Analysis

Using the Market Data Approach.  The use of market data in estimating real estate values involves the comparison of the subject property as a real estate entity with other similar real estate entities, which have recently sold (comparative) and are now for sale (competitive).  These considerations are limited as much as possible to properties which are believed to have a high degree of similarity and to transactions which involved informed buyers and sellers who negotiated freely in the open market.  As a method, it is based upon the idea that a prudent person will pay no more for  a property that it will cost to secure a comparable substitute. 

The approach is not intended to limit in any way the actual selling price of the property.  It does, however, provide a strong foundation upon which sellers may base expectations regarding their selling price.

Can I get more than the Comparative Market Analysis indicates?  Your home or property is worth a great deal to you.  Perhaps it represents hours of handiwork, the early years of your children's lives, or years of happiness and memories.  However, your property has a defined market value, which is determined by what a knowledgeable buyer will pay after it has been exposed to the market for a reasonable period of time.

It is important to price your property realistically.  Our past experience indicates that a property that is correctly priced can be considered three-fourths sold.

Overpricing can work against you. 

• Your property will not compare favorable with similar properties that are propely priced, so you will, in fact, be helping to sell your competition.
• An overpriced property will remain on the market too long, prompting buyers to feel there is something wrong with it.
• If your property does not sell quickly, you may be forced to own two properties or it may even prevent your move.
• If your property should sell at an inflated price, a low appraisal will make financing more difficult, possibly even costing you the sale.
• It reduces the sales associates' activity and enthusiasm.
• It reduces advertising response.
• It discourages qualified buyers from making a realistic offer, based on their education of the market.

To find the current market value of your home give us a call or simply complete the fields requested below and you'll receive a Comparative Market Analysis (CMA) of your property!