Selling a Home > Determining Your Homes Asking Price 

Determining Your Home's Asking Price

Your decision about the "asking price" of your home is one of the most important you will make in the selling process. The object is to choose a price that is neither too low nor too high. But doing so is a complex procedure involving a comprehensive understanding of the market and an objective opinion of your home's selling capabilities. 

WHAT IS "MARKET VALUE?" 

Market value is the highest price a property will bring in a competitive and open market under circumstances conducive to a fair sale. These circumstances include: An informed buyer and seller who are aware of the alternatives available to them through access to reasonable market information. Rational, prudent behavior by buyer and seller, which assumes they will each act in their own self interest. No undue pressure on either party, meaning neither requires a quick or forced sale, nor is the seller willing to wait an unduly long time to find a buyer. In other words, market value is the price your home should sell for if it is placed on the market for a reasonable length of time and receives proper exposure and promotion. 


I have the knowledge and expertise needed to calculate your home's market value and help you set a realistic asking price that matches your sales objectives.

CALCULATING THE MARKET VALUE OF YOUR HOME

Your property's fair market value depends on many things including; specific location, building and lot size, construction materials, strengths and weaknesses, condition of the buildings and property, and the prices of homes sold recently in your neighbourhood. We assess these factors in a process known as "Comparative Market Analysis" (CMA). Your home is pared to similar homes that have sold recently or are currently on the market. Rarely are the homes used for comparison exactly like yours, so adjustments must be made for these differences.

DECIDING UPON YOUR ASKING PRICE

The price you choose to put in the Listing Agreement will be based primarily on its fair market value, but will also include other factors. For example, the tempo or mood of the market is important. Is the market getting stronger, which will work in your favour, or is it weakening? Are interest rats dropping or rising? Are people worried about their jobs, or are employment and buyer confidence high? How many homes like yours are you competing with, and how many are selling? And most important, what are your sales objectives? As you weigh these factors, remember also that it's nearly impossible to replace the initial flurry of interest and activity a new listing will generate, so it is critical to establish an asking price that takes the best advantage of these initial marketing activities.