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Pricing Your Home


Home Prices in Your Neighborhood

Knowing how much homes are selling for in your neighborhood is one of many factors to consider in determining the selling price range for your home. When you contact us, we will put you in touch with a qualified real estate professional who will visit you and prepare a market analysis of the homes recently sold in your neighborhood, share his or her in-depth knowledge of current market conditions, and help you determine the market value of your property.

Keep in mind, your home is only worth what someone is willing to pay for it. Working with a Prudential Real Estate Professional, will help ensure that your property will receive maximum exposure to attract interested people who are willing to make an offer.



Fair Market Value

The basic laws of supply and demand greatly impact what a buyer is willing to pay for property and the amount financial institutions or lenders are willing to finance.

Fair market value is defined as the likely price a ready, willing, and able buyer is willing to pay for a property when:

  • The property is offered for sale on the open market.
  • The property is marketed for a reasonable period of time.
  • The buyer has a complete understanding and knowledge of the property.
  • Neither the buyer nor seller is under abnormal pressure.


Determining Property Value

The Market–The market approach is based on the premise that a prudent person will pay no more for a property than it would cost to purchase a comparable substitute.

Competitive Listing and Sale Prices–To form an opinion of value, a Prudential Real Estate Professional will analyze current listings and sale prices of similar homes in your area. He or she will consider properties that have recently sold, are currently for sale, or were offered for sale but did not sell. Although none of these properties is identical to yours, only those that have a high degree of similarity are noted in this report.

Comparative Evaluation–A Prudential Real Estate Professional can prepare a detailed description of your property and an estimate of the selling price range in today's market. This is known as the comparative or competitive market value of property.

Staying Current with Market Value–Once your property has been listed, a Prudential Real Estate Professional will continually collect and review updated information to monitor the offering price. Our observations may include:

  • Professional opinions
  • Industry (broker) response
  • Buyer reaction
  • Current market conditions
  • Competing properties
  • Availability of financing
  • Number of showings
  • Length of time on the market
  • Interest rates
  • Condition of the property
  • Seller motivation

Factors that Do Not Affect a Property's Value

  • What the owners paid when they built or bought the property
  • Some of the improvements and upgrades the owners have made to the property
  • The cash proceeds the owners want or need from the transaction
  • What friends, neighbors, or relatives say a property is worth

Factors that Do Affect a Property's Value

  • Style, condition, age, decor
  • Location
  • Time of year
  • Property and neighborhood
  • How quickly seller needs to sell

Competitive Pricing: The Pricing of Choice

The probability of receiving an acceptable offer on your property and completing a sale diminishes significantly when your asking price is higher than the current market value.

Here are the factors that will determine price range:

  • Your property - its strongest selling points
  • The competition - the asking prices of other homes for sale in your area
  • Successful sales – the actual sales prices of home in your area
  • The expired listings - homes offered for sale that did not sell


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