You should know that a property’s market value is determined neither by sellers nor their agents. Rather, fair market value is determined by the highest price that qualified, informed buyers are willing to pay at a specific point in time after the property has been exposed to the market.
What we as agents try to do is estimate today’s fair market value via a comparative market analysis. This includes a candid assessment of the property’s location, size, conditions, amenities and emotional appeal in the context of the current market. We use this analysis for appropriate property pricing in order not only to get the best possible sales price, but maximum market response.
Fair market value is often not accurately represented by older appraisals or refinancial appraisals that are done by appraisers not completely familiar with the property’s specific market area. Out-of-town appraisers simply can’t do the job that local folk can.
And it’s important to keep in mind that buyers aren’t so much interested in what a seller wants, needs or has invested, so these things are neither relevant to a comparative market analysis or property pricing.
Tomorrow I’ll discuss pricing and buyer dynamics, as well as the effects of overpricing.
Dreaming of San Francisco? Cece Blase offers local advice to San Francisco buyers, sellers and owners-- and feeds the dreams of those who wish they could live in Tony Bennett's 'City by the Bay.' Call 415-577-0809 or email cblase@paragon-re.com. www.ceceblase.com
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