My seller in Mount Gilead (or Cardington or Marengo) says "I want more for my house!" "I need more!" "We have more invested!"
But what is the best price for a piece of real estate? Mortgage lenders, appraisers, and real estate brokers use what is called the "fair market value" (FMV). FMV has been defined as "the price that a buyer is willing to pay and the seller is willing to accept, when both parties are knowledgeable about the property and neither is under any time pressure to buy or sell". Sounds great, but really, how is this price determined?
Buyers and sellers both need to understand that it doesn't matter what a seller wants (or needs) nor does it matter what a seller might have paid for a property, or what improvements he's done and what those improvements might have cost the seller.
The real value of a property (or a car or anything else for that matter) is "What a buyer is willing to pay". The appraisal process by a professional licensed appraiser helps to determine the current Fair Market Value.
The starting point for determining a fair price may be an opinion of the value or "comparative market analysis". Such an analysis uses information on similar properties which are: 1) currently for sale, 2) already sold, and/or 3) expired properties (those which did not sell). Local, national and international trends and market conditions must also be evaluated. The appraiser then sorts and reviews all the data and comes up with an opinion of value based on these similar properties.
By comparing similar properties in each of the three categories and the market conditions, appraisers, lenders and agents come very close to the maximum price that buyers would be willing to pay for a house.
If you've been wondering about the value of your home (or one that you are considering buying) feel free to give me a call and I'll help you through the process of determining value.
In the meantime, to see all homes and land for sale in central Ohio including Morrow County, visit my web site at http://www.herbsells.comor www.morrowcountyhomes.com
Herb Baldwin, e-Pro, Realtor
, CDPE herb@herbsells.com
RE/MAX Genesis, Mt. Gilead (Morrow County) Ohio, Helping people realize their dream of home ownership in Morrow County (45 minutes north of Columbus) Ohio.
To view any home in Morrow County, call me now at 419-947-4004
See all central Ohio homes for sale at:www.herbsells.com
great post. There is an old saying that goes "People in hell would love a glass of ice water!" It isn't going to happen if the factors you mentioned are not there. As you mentioned we are guided by appraisals, supply and demand and market values.
All sellers want more -- but the market is what the market is.