When home sellers from right across the metro Edmonton area contact us for a discussion about home value, they are normally thinking that only one price value exists for their home or condo. That is the amount of money it would generate if sold today. However, it’s never that simple.
Many people are surprised to learn that there are several ‘value sets’ associated with their home.
For example:
Tax Value - calculated by your local tax office so that they can send you a bill. This value is calculated by computer, usually with an accepted variance of less than 3% either side of the actual amount you might get if the property was sold. Do not rely on this information to price your home. We can show you homes that have sold for much MORE and much LESS than the value on your tax letter.
Lending Value – Your bank when lending money has only one true goal in mind. Of course they want to make a loan, but they are most concerned with what happens if you stop paying. This is why they send an appraiser over when you purchase or refinance your house or condo. They simply want to know that if they were forced to sell it, that they would get their money back. Their value calculation will be conservative and hence in many cases quite a bit less than you would be able to sell the real estate for.
Replacement Value – Your insurance company is interested in this value. Usually they need to know how much it would cost to replace your home, if it were lost in a fire or other disaster. This value will assume they have to build a new structure and may therefore be above what you would be able to sell for.
Buyer Value – Buyers want the most house for the least amount of money. It’s just normal. How do you get them to move away from this position, to wanting to pay you the most they need to? Ask your REALTOR® about their multiple offer strategy. At this office we seek out multiple offers every time we sell a house.
Market Value – This value is arrived at by way of a ‘natural tension’ between what the seller wants and what the buyer wants. It’s a function of supply and demand. It’s dependent upon how well the seller positions her house or condo, at the start. In our Home Sellers Guide, we have indentified 8 key marketing components that you should be aware of if you want to be a successful home seller. To find out more, visit the link above or call us.
Want more information about our discount and flat fee home selling programs? Please feel free to call our broker owner Stuart Neal at: 780-760-2014.
Posted by Vital Home Realty on
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