If you’re in the market to buy or sell a home, it’s in your best interest to know the market before you set the price or pay for a home. In general, you can tell a lot about a market by looking at what comparable homes are selling for in the area.

If you’re selling, you want to get as much as you can for the value of your home, but you also want to stay competitive against other homes in the area. You would also like to consider how much time you have. If you need to relocate quickly and want to avoid paying two mortgages, you may want to “price your house to sell,” meaning, you price it a little below the market value. This will motivate buyers to select your house over others, more quickly.

Protect yourself by learning a little about the different markets. The market is the primary influence on a property’s value, overriding its condition and desirability. There are essentially three types of real estate markets:

1. Seller’s Market – a market in the seller’s favor
2. Buyer’s Market – a market in the buyer’s favor
3. Balanced Market – supply equals demand

You should not make an offer on a home, unless you are familiar with what type of market the home is located in. Take the time to evaluate other properties in the area, as well. How does your target home compare to these others? Over-priced? Under-priced? In the middle? When you figure out where the house lies in the market, you can put in a good offer, while not selling yourself short.

Keep in mind these other factors that also affect value:

• Location, Location, Location!
• Economy
• Property Specifications
• Condition of home
• Competing properties in the area

You can’t afford to ignore market conditions. Take a moment to fill out the form below and click the “Submit” button, and we’ll send you a FREE information package on the market variables.