What Truly is The Market Value of Your Jacksonville Home?

Seller

Dear Jacksonville, Your Market Value, Appraisal Value and Listing Price Are Not the Same Thing ...

Market Value (defined) -What a buyer is willing to pay for your home and what you (the seller) is willing to accept.

As a Seller you need to ask yourself, "Do you want to sell your home more or do you want achieve the price in your head more?" If want to achieve the price in your head more then you are just testing the market and do not really need to sell. In addition, you probably won't sell if the price in your head is significantly greater than the market value of your home.

Put yourself in the Buyers shoes. Say you found a house you like. You been through other homes in the neighborhood and in comparable neighborhoods so you know the home is $20,000 over market. Do you go ahead and pay the $20,000 over market because the Seller tells you that is what they want? Of course not. You make an offer and hope to end up no higher than the market value of the home. If the seller is willing to come down to market value then you go to your second choice and make them an offer.

Your Realtor does not define the market value for your home.

Your Realtor gives an educated opinion as to what they think the market value is based on what the Jacksonville real estate market is doing at that time.

Appraisal Value Is Not Always Market Value

Appraisal Value (defined) What a state certified appraiser says that your home's market value is worth based on recent sales in your Jacksonville neighborhood.

Because Appraisers look at Recent Sales there can be two flaws in the appraisal:

In a rising market they can be below the actual market value of the home.
In a falling market they can be above the actual market value of the home.

Listing Price Is Not Always Market Value

Listing Price (defined) - The price the Realtor feels will bring in the most activity from buyers and get you offers. This number is based on the Realtor's knowledge of the market, active sales, pending sales and recent sales.

Because a Realtor looks at Active, Pending and Sold properties the actual listing price can be above or below recent sales.

In a rising market the listing price will be above recent sales and depending on the other active properties ... above other inferior active listings.
In a falling market the listing price may be below recent sales because that is where the market is heading.

How Market Value is Not Determined

How much you put into the house
How much you need to buy your next home

Look for my next post What to do Jacksonville When You Disagree With Your Realtor on Your Price to learn how to determine market value.

Related Links:

seller (55) market value (17) listing price (17)

Date: Wednesday, March, 5th 2008 @ 01:44:00 PM
Views: 512

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