THE VALUE OF YOUR HOME
When markets shift from one cycle to another (i.e. sellers' market to Buyers' market) it is difficult to assess the appropriate value of a home. Everyone will have a different opinion about the "market value" of your home. Your neighbor, the bank,
the appraiser, you and your agent will all come up with different opinions.
The market is what sets the price (a house is only worth what a willing and able Buyer will pay for it).
So how can a seller arrive at the maximum "fair" price that Buyers may be willing to pay in a given market?
Buyers (and appraisers) make their decisions based on comparing your home to comparable homes in the area. However, there is a fundamental difference between them: Appraisers look at HISTORICAL data only. And Buyers may also look at past sales,
but most times concentrate on comparing to other available homes (active inventory) to determine which home would provide them the best value for them. So sellers must price their home well enough to generate higher-than-average traffic and entice Buyers
to make offers, and the home must be worth a "fair market price" in the eyes of the appraiser! Most realistic Buyers do not expect a home to be a "steal" (i.e. dramatically
undervalued), but they do expect a "fair deal" for prevailing market conditions. Your REALTOR can look at both recent sales and available inventory to give you advice about pricing in a specific "sweet spot" for the market. You (the Sellers) set
the list price, and control the condition of the home. The willing Buyers determine the price they are willing to pay.
In this market, it is very common to get initial "lowball" offers from Buyers. But through patient and skillful negotiation Sellers and their Relator can normally bring the Buyer's offer up to a fair price.
Where is YOUR house positioned vis-a-vis your neighbors'? Fill out this short form to receive a custom POSITIONING GRAPH for your neighborhood: http://vid.us/60lciq (only available in Charleston, SC).