So you have a house that's for sale, is it on the Market or is it in the Market?
Do not discount this play on words as there is a critical difference which will likely affect if your house actually sells. Simply putting a sign in the yard and advertising a home ensures you are on the market. But the question is whether your home is in consideration by prospective buyers. Is it priced correctly for its location and condition, is it priced at the current fair market value?
Thanks to the wealth of information available to consumers today via the Internet, most people have a reasonable understanding of what fair market value is for homes in a given area they are considering. Using this basic knowledge, they will evaluate a home in comparison to their perceived market value for the area.
The attached graph illustrates that approximately 60 percent of buyers purchase their homes at market value. If the property is even 10 percent above market value, half of the prospective buyers rule the home out and move on. If the asking price exceeds 15 percent over market value, then the percentage of buyers drops to only 10 percent.
Do you want your property to be in consideration by 60 percent of prospective buyers or 10 percent?
Do you ever wonder why two homes are for sale in a neighborhood and one sells and the other does not? If the location and condition are similar, then the determining factor is price.
Do not be one of those homeowners who want to price your house 10-15 percent above fair market value to leave room for "negotiation." Simply put, you are taking your home out of consideration by a majority of savvy buyers who are looking for the perfect home at a fair price.
Want to know what fair market value is for your property? Consult a professional Realtor with the Greater Chattanooga Association of Realtors. They can provide you with a complimentary market analysis to ensure your home is in the market and in consideration by prospective buyers.