Market Value
Many of us can very easily have an over exaggerated opinion of our property's worth. You take pride in your property, especially if it is your home. You've probably put a considerable amount of time and money into maintaining and improving it, and have many pleasant memories of your time there.
Truth be told, if your home isn't on the market, it can be worth whatever you say it is. You could very well tell yourself that you'd never sell your house/condo for less than a certain amount of money. If that's the case, your property is indeed worth that much - TO YOU! However, when you need to sell your property, what it is worth to you is entirely irrelevant.
It's important to understand that the market value is the relevant value when you are ready to sell. This is what your property is worth to all the buyers at that point in time. The market around you primarily dictates your market value. Sometimes people are quick to point out how much money they've put into their house/condo, thinking the value should match what they spent dollar for dollar. A real estate appraiser, real estate agent, or prospective homeowner doesn't take into account how much you originally bought the property for or if you spent $50,000 on renovations. Your property is worth what the market says it is worth and those renovations may only add a couple thousand dollares to your market value.
Situations arise daily where the Sellers do not want to accept the market value from an appraiser or realtor having done a comparative market analysis, or they disagree with the results. These Sellers normally find a real estate agent with alot of patience or not much business. The agent lists the property for too much, hoping the Sellers will eventually get desparate to sell, face reality, and lower the asking price. Sellers often get frustrated waiting, and often end up selling for even less than they would have gotten if they had priced it right to begin with.
What then, is market value? It sure isn't what you have invested into your property, or what you may feel it is worth. It is simply what the market will pay. How do you determine what the market will likely pay? The best method to do this is to have a Competitive Market Analysis done by an experienced Realtor who will give you the facts and not necessarily just what you want to hear.
Ken Stef has 11 years of experience in Real Estate, including performing market valuations for global corporate clients, so he understands the importance of giving his clients an accurate report based on facts, to assist you in making an accurate as possible decision. If you wish to have one done on your property, simply fill out the online form on this website by clicking here, or email me at ken@kenstef.com, or call KEN STEF at my toll free number 1 (888) 509-1474 and I'd be honored to assist you at no cost or obligation.
