In this world nothing can be said to be certain, except death and taxes – Benjamin Franklin
Benjamin Franklin sure seems correct about the two items noted in his well-known quote above. However, something else in this world is just about as certain and it involves a ‘secret weapon’ for homeselling success.
But while this sure-fire ‘secret weapon’ is relatively obvious to any objective observer, many homesellers couldn’t tell you what it is. Curious? Then read on.
Ever wonder why some properties sell and others don’t? Is the difference little more than guesswork and getting lucky, or is there a game-changing weapon in a homeseller’s ‘utility belt’ to help prevent one’s property from being tainted with the moniker of ‘unsold?’ Most sellers typically have such a bandolier in their arsenal and it’s called fair market value.
You’re about to learn how this powerful tool can instantly weaponize even discouraged homesellers and provide powerful real estate ammunition to help sell their home. But what exactly is fair market value and how is it determined?
By The Book
The Internal Revenue Service defines fair market value as “the price that property would sell for on the open market.” Similar definitions sometimes include a factor like ‘arm’s length transaction,’ where buyer and seller don’t know each other. The point is that fair market value is based upon exposing property to a broad market of buyers, typically using a Realtor’s multiple listing service, along with various other reliable marketing methods.
Why Fair Market Value is So Important
Fair market value implies correct pricing. Unless a homeseller prices correctly, the result can mean they either sell their property for less than it’s worth, or it sits unsold. And while over-pricing may seem harmless, it can have negative consequences.
By not paying attention to signs of overpricing early in the selling process, the potential cost of playing ‘catch up’ can be significant. For example, some buyers deem property with a lengthy market time as ‘shopworn,’ or a ‘dog.’
They figure that if no one has bought a property after so long, something must be wrong with it. As a result, even with successive price adjustments, buyers well-suited to a property must then be re-educated about the new price.
How It’s Done
Correctly pricing property is a routine, yet essential duty of an expert Realtor. And while most homesellers prefer to rely on their real estate agent to amass and interpret such data, in our next article, you’ll get a ‘secret peek’ with an insider’s view of the factors vital in determining fair market value.
Selling Your Oregon Home?
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