Many Home Owners want to know how market value will be established when they place their homes on the market.
Market value is simply what a buyer is willing to pay and a seller is willing to accept. This answer assumes that both parties are well informed about closed home sales that are “comparable” based on four important factors:
1. Location. Even within the same city, different neighborhoods can have completely different market values. Compare prices of recent sales in the same community.
2. Age. Comparable homes should be built within a couple of years of yours. Building codes and style trends vary with time and greatly affect value.
3. Size of home and lot. Buyers are sensitive to the price in relation to square footage, number of rooms and living area. Your home may be unique but buyers will compare the price with neighbouring properties for both the home and the land.
4. Property condition. As the seller, you have many opportunities to increase the attractiveness of your home by getting it in tip-top condition and staging the rooms before placing the home on the market.