So, who sets the selling price of a home? Is it the Realtor, the seller, or the
buyer? Arguments could be offered regarding all three. But the truth is, it's the
MARKET that sets the price.
What is MARKET VALUE?
The National Residential Appraisers Institute defines market value as...
The most probable price which a property should bring a competitive and open market
under all conditions requisite to a fair sale, the buyer and seller, each acting prudently,
knowledgeably and assuming the price is not affected by undue stimulus. Implicit in this
definition is the consummation of a sale as of a specified date and the passing of title
from seller to buyer under conditions whereby: (1) buyer and seller are typically
motivated: (2) both parties are well informed advised, and each acting in what he
considers his own best interest: (3) a reasonable time is allowed for exposure in the open
market: (4) payment is made in terms of cash in U. S. dollars or in terms of financial
arrangements comparable thereto; and (5) the price represents the normal consideration
for the property sold unaffected by special or creative financing or sales concessions* by
anyone associated with the sale.
Investorwords.com defines market value as...
The price that an interested but not desperate buyer would be willing to pay and an
interested but not desperate seller would be willing to accept on the open market
assuming a reasonable period of time for an agreement to arise.
My job as a Realtor is to help buyers and sellers understand market value by providing
competent research of our local market. I am good at what I do, but I don't control the
market, I only interpret it.
Someone once said,
"The market may not be kind, but it is never wrong."
In other words, your home is worth not what I think it is, nor what you think it is, but
only what the market says it is.