PRICING YOUR PROPERTY

What a buyer is willing to pay for your property is the value of that property.

This value will change in different markets.  What a buyer is willing to pay is determined largely by what choices are available to him at the time of purchase. When doing a Market Evaluation, the question that Realtors® attempt to answer is “What will a buyer perceive your home to be worth in light of the current competition?” This magic number is called “Market Value.”

Market value then is the value of a property under current conditions. It does not reflect what the home may once have been valued at; it has no bearing on what was paid for the home, or what it cost to build. Neither the seller nor the Realtor® can change that fact or the conditions of the market place at the time the property is offered for sale. The market must be accepted for what it is.

There are many factors however, that enter into the comparison of the one property to another. Listed below are the more common parameters used in the comparison process to establish the price, or more specifically, the Market Value of your home.

Location! Location! Location!                                             Type of Exterior

Size                                                                                      Condition of the Exterior

Age of Home                                                                       Type and Condition of Roof

Type and Condition of Interior                                             Type and Condition of Foundation

Type and Sizes of Rooms                                                     Parking Provisions

Number and Location of Bathrooms                                    Quality and Quantity of Landscaping

Number and Location of Fireplaces                                     Outdoor Development (Patios)

Architecture                                                                          Land Use Classifications

Type and Quality of Construction                                        Proximity of Amenities

Quality and Quantity of Basement                                       Equipment Included

To Achieve a Sale in a reasonable time period.

    CREA* statistics published a few years ago indicated that if a listing is priced:

                 

                  At Market value………………………………..it has a 95% chance of selling

                  At Market value + 5%..........................it has a 50% chance of selling

                  At Market value + 10%........................it has a 35% chance of selling

                  At Market value + 15%........................it has a 25% chance of selling

    *Canadian Real Estate Association