Real Estate Sellers

When setting a listing price for a property to be sold you have to consider a range of issues that make up fair market value.

Fair Market Value

Simply, FMV is the price that a willing buyer and seller would transact without undue pressure. Now this is a very subjective idea and quite a few elements go into the final estimate or listing price.

Pricing the property properly can be the difference between a sale and a stale property listing. Robert Link of S&L Realty in San Francisco notes that 90% of all listings priced 5% under its value will sell. If it is priced over its true value, 90% will sit on the market unsold until a price reduction is executed Now keep in mind that real estate is a series of markets and individual deals and is hard to benchmark. But there is help.

The Real Estate Agent

A good real estate agent will know the market and may even specialize in the micro market you wan to sell in. Competitive Market Analysis: This is a real estate agency generated report based on the comparison of the prices of recently sold property similar in location, style and amenities. The sales price should reflect differences in size, date condition and location. Add to that mix any market knowledge or experience the agent or realtor has and you should come up with a fair price range.

The Appraiser

The appraiser will consider a host of components that will be expressed as a good faith estimate of a property. The appraisal process will consider:

Three Approaches to Value