How does a REALTOR® evaluate what my home is worth?

(02.02.02) Market Value is usually defined as the price at which a willing Seller will sell and a willing Buyer will buy. That means that the value of your home is not fixed, but rather, like stocks in the stock market, it can change depending upon a number of factors. Most REALTORS® will use a Competitive Market Analysis (or CMA) to assist you in choosing a price at which to market your home. The CMA includes a comparison of your home to similar properties that have sold recently, properties which were listed, but did not sell, and ones that are presently on the market. The sold properties give you evidence of what Buyers were recently willing to pay for homes similar to yours. The ones that did not sell will indicate prices that Buyers were not willing to pay, and a look at the competition will help to determine at what price you might want to begin to market your home.

Your REALTOR® will also take into consideration the current market conditions, like interest rates for mortgages, economic trends both local and national, and time of year in which you are selling. The condition of your home will also affect the value. Today's Buyers are busy people who may not have much time for fix-up so generally, the better the condition, the quicker the sale, and sometimes the higher the value!

Most REALTORS® will provide you with a CMA without cost or obligation as part of a REALTOR®'s service when you list your home for sale.

Disclaimer: These answers are in general terms and may vary with specific factual circumstances.