When you sell your home, you need to understand the difference between its value and its price. Here’s how.
When you sell your house here in the East Bay market, it’s important to understand the difference between value and price.
Value is merely a function of supply and demand, while pricing is a function of how to market a property based on the value. Take a car for example; buyers go to Kelly Blue Book to get the value. They aggregate different sales of comparable cars and consider all the features, age, mileage, and benefits to give you a value range of what the car might be worth.
Translating it to real estate is the exact same concept.
To get the value of a property, we consider how it compares to other properties that have recently sold, the current supply and demand, and other similar items. The value is based off other comparable properties that have sold, just like cars.
From there, you’ll use this knowledge as a marketing strategy to determine what you’ll actually list the home for. To determine the value range you should list it, you want to determine what’s going on in the current market. How much demand is there and how much inventory is there? This will help you determine whether you should market the home on the lower end of the value range or the higher end.
If you’re thinking of selling your home this year and you’d like to discuss the value of your home and the best way to market it from a pricing standpoint, give me a call or send me an email. I’d be glad to help you.