One important fact to keep in mind when looking at purchasing or selling a home: Homes will generally sell at market value. This raises some key questions that both buyers and sellers will want answers to:
- What is market value in the world of real estate?
- How does market value come into play when you’re buying a home?
- And how is market value key in setting the asking price when listing your home for sale?
What is Market Value?
Market value is the amount any given buyer is willing to pay for a home. It is not what a homeowner paid for the home, what they owe on the home, or the amount they have invested in the home. Market value is the perceived value at an given time and can change fairly quickly depending on several factors such as what comparable homes are selling for, the demand for homes in the neighborhood, and the condition of the home.
What does this Mean for Buyers?
So what does all of this mean for buyers? A home will generally sell at market value. So be realistic when looking at your price range and budget and how much home your money will buy. It is increasingly difficult to find the home you want for a bargain. Home prices have been on the rise. In many real estate markets, including the Lake Norman area, homes are not staying on the market for very long. Low inventory means multiple buyers may be vying for the same property. To get the best deal buyers should:
- Act Quickly – know the features you want in a home, the location you wish to be in, and your budget so that you can respond quickly once the home you’ve been waiting for hits the market
- Hire a Competent Agent – your agent should know the local real estate market and such numbers as the list to sale price ratio. Your agent should also be notifying you the moment homes that match your search criteria are listed in the MLS.
- Be Preapproved – a qualified buyer will be ready and able to make an offer that the seller can accept with confidence
What does this Mean for Sellers?
What about sellers? One of the biggest mistakes sellers can make is pricing their home based on what they owe, not what their home is actually worth. Remember, the home will sell at market value. So no matter how much you need that home to sell at $170,000, if it’s worth $150,000, it will unfortunately sell at actual market value, the lower number. So save yourself time and frustration and set the price correctly to begin with. To make sure your home sells quickly and for the most money possible here are three tips for sellers:
- Price It Correctly – several factors are used to determine the list price of a home and your real estate professional can help you arrive at the correct list price. Do not make the mistake of pricing your home too high. You will always be chasing the market. Price it correctly the first time!
- Prepare Your Home – improving curb appeal, staging, decluttering, neutralizing. Remember market value is determined by the buyer coming into your home and comparing it to other homes he or she has seen. Make your home stand out from the rest and you have raised its market value.
- Fix And Repair – it can be tempting to figure the buyer can replace the carpet, fix the leaky faucet or repair the wobbly step. But buyers start mentally deducting dollar amounts from their offer the minute they walk in the door. Having everything in good repair will again raise your home’s market value.
To find out what homes are selling for in the Lake Norman area or for a free market analysis on a home you wish to list for sale contact the Kradel Team at 704-657-1735 or email us at firstname.lastname@example.org. To search for homes in the area use the search widget or go to our website.