When it comes to buying and/or selling a home it’s important to differentiate between market price and market value, understanding that the two are not synonymous.
Market Price is the actual price paid for a specific property.
Market Value is an estimate of value arising from comparable sales based on the present market.
Market value is a term you will hear from your realtor when you’re discussing the price you’d like to list your home for. While your realtor will provide you with relevant market information to assist you in making an informed decision, it is ultimately up to you (the seller)to settle on a listing price you’re happy with. Consider suggestions from your realtor based on their expertise and provided comparables, but ensure you’re comfortable with the listing price and that you fully understand how, as a team, you landed on that number.
If it’s a seller’s market, or a buyers market, there will be various advantages and disadvantages respectively; but, for true market value to be achieved it’s crucial that certain factors are in place:
→ Both the buyer and seller should always be well-informed regarding the subject property. There shouldn’t be any missing pieces of information.
→ Every person involved in the transaction (buyer, seller, and/or realtors/brokers)should be acting prudently (acting with care and thought for the future).
→ The sale should be completed with no undue pressure for the seller or the buyer.
→ Ideally, it is sold within a reasonable time(not overly quickly and not left sitting too long – this could indicate that perhaps the home is not priced well).
Do your best to ensure all of these pieces are in place – your realtor will be able to detect any red flags or areas of concern.