With all properties, a Realtor looks at comparable home sales to begin the assessment of value.  Primary in this search is to find sold homes that are as similar to the subject as possible in terms of style, location, condition, square footage and amenities (fireplaces, decks, etc.).  When these similarities can’t be found, adjustments must be made to bring the properties into comparability.  That is the beginning, not the end, of the analysis and here is where Realtors differ from appraisers.  As Realtors, we are concerned with placing your property within a price range that will make you competitive or highly competitive to be sold; we research the active comparables that you will be competing against as well as pending sales that are comparable with your property.

This is an individual discussion with a seller.  Some sellers need to sell immediately and want to be the best buy in their price range and other sellers want to wait and see what happens if they start at the top of their price range, choosing to make price reductions later if the property doesn’t sell.  This can be a dangerous game as the listing gets older as time goes on and there is always a supply of new “fresh” listings coming on the market.  It is surprising, though, how many sellers who are not pressured to sell choose this route over the highly competitive route which has a mucher quicker success rate.  Within a certain price range there can be a 10% varation so most Realtors will accept listings within that assessment. 

There is a clear and absolute definition of Fair Market Value and that is this:  “the price a willing buyer and a willing seller agree upon, neither party being under duress”.  That is the final sales price at closing, not the original list price.  Yes, in rare cases that price is the same but when that happens it is because the seller priced to be the best property in his or her price range and had perfect maintenance, to boot!  All markets revolve around the concept of supply and demand and even within the time your home is on the market that situation can change on a daily, weekly or even monthly basis.  It is also true that a good Realtor will have all the facts that you need to stay on top of this.  Every price range has different supply and demand and it is critical to understand that piece of the equation. 

If you are considering the sale of your home, land or commercial property, give a Hoisington Realty agent a call.  We can help you assess the market and how your property will compete with other properties.  We know our stuff!