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The MARKET Is the Only Determinant Of The VALUE Of Your Home

There’s an old saying in real estate: “Sellers are NOT the deciders of what their home is worth, but they ARE the deciders of how quickly their home will sell.”

The REAL value of your home is what a willing buyer will pay for it, and what you will accept - TODAY. Nothing more. Nothing Less.

OK, so let’s say you’ve determined that the average discount on homes in your area is 2.5 percent of expected selling price. And sales information shows that your home is worth $300,000. To determine a list price that is within 2.5 percent, divide $300,000 by .975 (1.00 less .025 = .975). This gives you a list price of $307,000.

But remember this: Markets and the economy are in constant flux and conditios can change drastically in a short period of time. If interest rates rise by just one % point a buyer qualified for a $300,000 mortgage loses $25,000 in buying power - meaning that to keep the same monthly payment they would have had before the rise in rates, they will have to purchase a home at $275,000 rather than yours at $300,000.

With just a one point shift in the mortgage market many people who could otherwise afford the $300,000 price tag your home carries may not be able to any longer. And, because all financial markets are ruled by SUPPLY/DEMAND economics this will ultimately affect the value of your home. Lower supply of qualified Buyers qualified translates into less demand for your home. So you may need to proactively adjust your price to beat out the competition. That's why, particularly in the declining Intown Atlanta Marketplace, it is so important to stay on top of market events, both nationally and locally.

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