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For Further Information Call:
Dick-(870)
421-0699 Arlene-(870)
321-0810 |
What is Market Price? Also, Check out These Other Links: What if I choose to sale my own house? How do I get my house ready to sell?What is a Timing Analysis? What is a Buyer Type analysis? What is a Financial Analysis? Why do people use REALTORS®? What does CENTURY 21 LeMac Realty East offer to make a difference?
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First of all, let us tell you what MARKET
PRICE is NOT. The value of your home has nothing to do with what you paid
for it, what you have spent to improve it, what your friend said he sold his house
for, or what you have to get in order to buy another piece of property. Now, what IS MARKET PRICE? This is the price that the market will bear at the time you have an offer. There are many factors that effect this price, but the most vital one is what we call SUPPLY and DEMAND. "As an economic concept, MARKET PRICE is the price at which a good or service is offered at in the marketplace. This PRICE IS REACHED when MARKET SUPPLY and MARKET DEMAND meet."* Most people know that when there is a lot of an item available, whether it be apples, gasoline, or houses, and there are only a few people wanting the item, the seller of the item has to lower the price in order to get it sold. This happens because there is a LARGE SUPPLY and a SMALL DEMAND. On the other hand, if the item is very scarce and there are lots of people wanting it, the price of that item goes UP! This happens because there is a SMALL SUPPLY and a LARGE DEMAND. This law of SUPPLY and DEMAND effects what people are willing to pay for an item. Usually when there is a lot of competition and people can be "choosey," the buyer gets a better deal. Unfortunately, no matter what the seller thinks his product is worth, or even what it cost him to purchase the item, the buyer will keep looking until he finds a seller who will take less. Likewise, it works in reverse when there is little competition. The buyer may want a good price, but if there are lots of people wanting the same item, the seller can ask a "hefty" price and can usually find a buyer willing to pay what he wants for the item. Another factor that effects the price of a home may be the location of it. Since you can't move the house, the only solution is to make it so reasonably priced that someone will disregard the location. Actually this is another version of SUPPLY and DEMAND. Besides, these factors, the availability of money in order for a buyer to get a loan may affect Market Price. If the banks or government policies make it difficult to obtain money, then the buyer may not be able to pay even what he would otherwise be willing to pay for a home. What is a seller to do if the market does not favor him, and he has to sell his property anyway? * This is a quote from: www.wisegeek.com/what-is-market-price.htm Check out some of the other links that tell you how to evaluate the situation you have so you can maximize what you are able to sell your home for. |
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What is a Timing Analysis? What is a Financial Analysis? Why do people even use REALTORS®? This material is for your information only and is not to be construed to solicit business if your are working with another real estate agency.
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©2008 CENTURY 21 LeMac Realty East
©2008 Century 21 Real Estate LLC CENTURY 21® is a registered trademark licensed to Century 21 Real Estate LLC. Equal housing opportunity Each office independently owned and operated. All information is deemed reliable, but is not guaranteed and should be independently verified.
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