What are the factors that determine price? 

1) Successfully Sold Homes

The most important determinant in setting a price for a home is comparing it to what other

comparable homes have sold for. When we use this information, we make adjustments for

upgrades (or a lack thereof), appreciation, location, etc. 

2) Competitive Properties Still on the Market

Homes on the market that are going to compete with your home for potential buyers play

a large role in determining your list price. It's important to remember that most buyers look 

at a number of homes before they buy, and most people have to stay within a home buying

budget. If you are the highest priced home in the subdivision, your home will probably 

take longer to sell.

3) Pending Sales

Pending sales are homes that have sold but are not yet closed. Since they haven't closed,

their sales prices are not revealed, and there market value is as yet undetermined.

Their list prices, however, give a good idea of market value. 

4) Properties That Didn't Sell

Some properties get listed but don't sell. These cancelled and expired listings are 

sometimes helpful in determining what to price a home for, because they tell you

what the buyers WILL NOT pay. 

5) Whether it's a Buyers or a Seller's Market

When it is a seller's market, you can often get more money for your home. This is because

when it's a seller's market, there are less homes for sale than there are home

buyers in the market to buy those homes. In a buyer's market, it's just the 

opposite; there are more homes for sale than their are buyers looking to buy those

homes. In this market, many sellers have to reduce the price on their home in order

to get it sold. In either case, it is simply supply and demand that sets the price.  

Some Factors That Do Not Affect Your Home's Value

What you paid for your home,

What you need (in terms of money) out of your home sale,

What you want (in terms of money) out of your home sale,

What your sister, mother, friend, etc. thinks your home is worth

(unless they are a Realtor or someone else who knows the local market

very well).

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