Market Value or Price

The market value and the price of a property: Is it the same? No. Often the price and value of a property is often confused. The price is considered rather subjective... We can hear from owners say "I want to sell at this price because I spent a lot of money in the house and I want to recover" or "I've been living here all my life and has a lot of sentimental value for me and my family, so I put that price" or "I want to take a walk I world and so this little flat must cost this "(well, maybe this last sentence is not heard so much, but the idea is there). If a price is not fair with what is around it, with what happens in the market or with its own characteristics, it may take a long time to sell, or rather it is almost invisible in the eyes of potential buyers. The truth is that there are many rather objective determinants that could determine the market value of a property at a particular time, and others that do not. If you want to find out, keep reading.

What is market value?

The market value, on the other hand, is the estimated amount by which an asset could be exchanged or between a buyer or a seller. It Is conditioned because on both sides they are acting honestly, without coercion or bond between them. That Is to say, It Is given by the supply and the demand of the market at a specific time. In other words, the market value is the meeting point between the interests of the buyer and the seller, as can be read in this article. According to the page Of the appraising company, in order to give the market value the price of the property has to have a reasonable estimate.

What influences?

In Addition to the market conditions, as discussed in the video and also this article, there are many factors that can influence the value of a property. For example, the ones listed in the article, such as the possible loads On the flat. Among them are:

The Location

One of the most valued things about a flat is its location. It Might be in a very well located area, with all the amenities nearby. Such as schools, supermarkets, good communication, transportation... Or, if it is a place that recently starts a process of development, or if there is a lot of nightlife because of its proximity to open rooms at night, or if it is more secluded but therefore it is very quiet. Over the years there may be many changes in this regard. All this can influence!

Is It new or old?

It Is another of the variants in the subject. If It is too old, relevant studies would be done to find out what would be needed to reform or improve. This cost is usually detracted from the price. If the building has already been reformed or not, what properties are in the surroundings and how recent are... If you want to know why a reform is good before you sell a pee, read the following article.  

The possibility of saving

A better rated housing in terms of energy certification is better valued, as well as the use of good materials that facilitate energy saving, or insulators that encourage the reduction of pollution caused by noise. Also, the fact that the house is luminous (by its windows and its orientation) helps to dispense with the electricity on many occasions of the day to day.

Space and Extras

How many square meters are really usable? Could they be modified to get more out of space or are they hallways? This type of conditioners are also highly valued in the face of the needs that can be presented to the prospective buyer. Also, if the place has a garage, storeroom, or if the house is near the sea, or if you have spectacular views, an attic or terrace, or if you have a nice garden are usually important features.

It does influence the value of the market

  • The state of the property
  • Location
  • What happens in the current market
  • The competition
  • The current funding

But what does not influence...

On the other hand, the market value is not fixed in terms of personal situations, in the desire to recover what has been spent on it, in what is needed, what you would like to receive for the sentimental value you have, what is worth the house you want to buy , or in third party opinions.

The importance of the price being correct

The agent you decide to sell your house to can make a dramatic difference if you sell it fast or at a good price. Those who are most influential in the market are the ones who have the most contacts from buyers customers, and much prestige. That's why your home will benefit from that positioning as well. They are experts in the area and can do a great job for you and your interests So are our agents of RE/MAX Golden Mile! One of our added values is to make good real estate valuations. Read more in this article. Save yourself headaches and rely on the number one real estate franchise experience worldwide. Contact us now!