Market vs Listing Prices for Real Estate
What does the real estate market say about YOUR home? Selling your home in Fredericksburg Texas or the Texas Hill Country area is just like selling real estate elsewhere; you need the best information available in order to know how to proceed. Getting the most for your home requires information and one of the best places to get it is from your REALTOR®.
It is important for buyers and sellers to understand how real estate prices are determined. The only price at which an item will sell is the ‘Market Price'. The entire real estate market dictates that price. When demand exceeds supply, prices rise. When demand falls below supply, prices fall. When demand equals supply, prices are stable and then and only then will a transaction occur. Neither real estate agents, buyers nor sellers set these prices.
The only way to determine the market value of a particular property is to study the recent sales data of properties that have comparable characteristics. Often sellers are tempted to list their Fredericksburg home for a price that is higher than is justified by the data. If the price is higher than similar properties being sold, the likelihood of finding a buyer dramatically decreases. Eventually in order to sell, the price is dropped. However, as a consequence of entering the market with a high price, the home usually has gained a reputation as overpriced and it does not get the attention it might deserve.Another consideration in determining the listing price is the appraisal value of the property. If the prospective buyer is getting a loan on the property, the mortgage company will not lend the money if an appraisal shows the contract price to be higher than the appraised value. Therefore, it is very important to have a professional assess the value of the property based on comparable properties
As an experienced REALTOR®, I use what is called a Comparative Market Analysis to show sellers and buyers what to expect for the value of real estate in the Fredericksburg and Texas Hill Country area. If you are an interested seller, call me to receive a free analysis of the value of your property. If you are in the market to buy, you can be confident that I will know the fair market value of any property in which you are interested.