What it is…and what it means for You!
It is often confusing for buyers and sellers as to what market value means. Simply, it is the price someone is willing to pay for your home today. Part of what a real estate professional can do for you is determine what the market value of your home is. This is done by examining other homes that are comparable to yours that have recently sold.
What you must remember is market value is based on the sale price of a home…not it’s asking price.
The factors that affect market value are the following:
- Current Market-Is it a buyer’s market? Or is it a seller’s market? Possibly even a balanced market? The kind of market that is currently in place will determine what homes are selling for.
Buyers Market- refers to a market in which there are more homes for sale than there are buyers in the marketplace. This means buyers have choice and typically more time to make decisions. Homes stay on the market longer and buyers have more negotiating power.
Sellers Market- refers to a market in which there are more buyers in the marketplace than homes available for sale. Homes will sell in record time and often will attract multiple offer situations. Prices are driven up often through competing offers and sellers have much more negotiating power.
Balanced Market- refers to a time in the market in which there is generally the same amount of buyers in the marketplace as there are homes for sale.
- Location- you've heard it before…location, location, location! This refers to both the city or town in which your home is located as well as the location within the city or town, or neighborhood, or street, or part of the street. A certain city or town may be in much higher demand than others. This may be due to the amount of jobs available in the area or the proximately to where the jobs are.
On another level location can be where you are located within the city or town. Location can even be on the same street…but one home backs onto other homes and other backs onto a forest.
All of these things (and more) are used in considering if a location is worth more than another.
- Condition- this encompasses any upgrades or renovations you have done to your home as well as the general condition of your home. Are your floors in good shape? Does the home feel clean? Has the home been maintained over the years? These are all things that affect the condition of your home.
If you are interested in finding out the current market value of your home make sure to contact a local real estate agent who specializes in your neighborhood.