 
Value is in the Eye of the Beholder
Determining the list price is the most important component when putting a home
on the market. Setting the price too high can discourage prospective buyers and
could prolong time on the market, making your home seem less desirable. Pricing
the home too low will result in losing money on your investment. Many factors
contribute to a home's value, including location and market value. A Realtor
can help you arrive at a fair market price.
There are several ways to help accurately determine a home's value.
- Comparative Market Analysis. A Realtor can provide a
Comparative Market Analysis (CMA). This report helps establish the relative
value of your home by comparing homes in your area that are currently on
the market and recently sold properties with similar characteristics. Comparables
include neighborhood, number of bedrooms and baths, lot size and certain
amenities (e.g. pool, garage space).
- Appraisal. For a fee usually between $200 and $400,
a professional appraiser looks at several factors to determine a home's
value. Appraisers research the current market value of similar homes in
your area, fluctuations in the real estate market and previous sales and
tax records of the home, as well as compare census data regarding local
home sales.
- Buyers hold the cards. Ultimately, buyers create the
value of a home. The value can vary, depending on supply and demand in
the market. Both a CMA and an appraiser help sellers to find out market
ranges for a home's listing price, but no two homes are exactly alike and
therefore no two will sell for the exact same price.
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