Home Value Explained 

 The market, nothing else, determines the value of your home.


You need to step back when evaluating your home. An appraisal may be a good idea, certainly interviewing several agents and getting a few opinions from them is minimally required. That said, it's important to review a few things:
The definition of market value as stated in the glossary of the most recent edition of the Uniform Standards of Professional Appraisal Practice is: “The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date and the passing of title from seller to buyer under conditions whereby:

  • buyer and seller are typically motivated
  • both parties are well informed or well advised, and acting in what they consider their best interests
  • a reasonable time is allowed for exposure in the open market
  • payment is made in terms of cash in United States dollars or in terms of financial arrangements comparable thereto
  • the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale"

Market value has NOTHING to do with:

  • what anyone thinks is the home is worth
  • what you paid for the home
  • what you owe on the home

Market value is influenced by:

  • value of COMPARABLE homes in your immediate area (comparable is “a reasonable alternative purchase to the subject”. Common sense should dictate what that means!)
  • condition of your home
  • characteristics of your home
  • trends in your immediate neighborhood and area
  • local and national economic conditions

A few more cautions:

  • a reliable evaluation requires more than 3 comps
  • are there comps closed within 6 mos, active and pending comps?
  • question the agent, why were these homes used?
  • are these homes truly comparable?
  • are there comps from similar competing communities?

Most sellers initially overprice their homes. If there’s a sound marketing strategy and you have a plan to adjust price as needed, then you may get lucky. The bottom line is that this isn’t a science; we set the table for success and if it’s done correctly we’ll capture a qualified buyer.

This is it in a nut shell. Since 1989 I've appraised and reviewed thousands of homes, sold hundreds more. When we sit down you will be presented with a comprehensive "Reasonable Expectations" packet detailing my findings and opinions about your home. This will be a candid assessment as it's my job to sell your home, not just list it!