The price of your real estate property depends on its value. The value of the property can be both subjective and objective at the same time. The subjectivity lies on the likes and dislikes of the buyer which can be based on his emotional requirements. The objectivity of attaching a price tag to your property depends on the market condition, comparison with other houses in your neighborhood, trends and forecast, mortgage interest, and house condition.
Value can also be related in a moment in time. For instance, the buyer can gauge the value based on how much money he currently has, or what time of the year they go out and look at your house. Here are some pointers that are true in determining the price:
- Prices fluctuate; it cannot be the same forever. They go up or down, depending on many factors;
- Value is a dependent concept; it depends on what person wants to buy;
- Agents and sellers can set the price but it’s the buyer that determines the value. You can change the price every day but in the end, you are not the person who can tell if the price is worth the value of the house. The buyer has the last say if the price is right.
So, how can you predict real estate prices? The price is determined by how much the buyer is willing to pay in today’s market. He will set the price after comparing it to other houses in the same neighborhood. But the truth is he will not compare it to other houses if he doesn’t like it in the first place. The price of the comps that are sold the day the buyer shops is the most critical factor in determining what price is he willing to buy your property.
It’s important that you know you are not the only one selling homes for sale in rancho santa fe. The number of buyers is limited and you want to give the best deal if your home is chosen. Selling a house is like a race, you need to find the right buyer as soon as you can before someone else takes them. Once you find the right buyer who settled for the price that you want, that’s the time you can say that you win the race.
Another way to predict the price is to know what’s going on in the market. For instance, if your competition drops their prices $10,000, then your house is marked overpriced. Pay attention to value movements in your marketplace since it also determines how much your house will cost.