Market Value is not what a real estate agent thinks nor is it what an appraiser thinks, it is what a ready, willing and able buyer will pay.

There are three primary methods used to estimate the value of a house.

• A Realtor's CMA (Comparative Market Analysis) based on the recent selling prices of similar homes in the area. Adjustments are made for features that vary from the subject property. Listing agents do CMAs for sellers and Buyer Agents do CMAs for buyers.
• An Appraisal. Appraiser's charge around $300 for their opinion. Appraisers look at recent sales, replacement cost, and highest and best use. The best way to pick an appraiser is to review a list of their clients or ask your real estate agent to recommend an appraiser.
• The Income approach is used to determine the value of investment property. The investor looks at all the costs, the occupancy rate, and the income potential to determine value.

When a property is priced correctly, it should sell in a reasonable period of time. (Nationally it requires 6 weeks to obtain a acceptable contract. Susan averages less than two weeks since March of 1999.) A buyer will normally look at several properties and make an offer on the one that provides the most value for the money. Studies show that buyers question why a home has not sold when it has been on the market for a length of time. Buyers rarely look at overpriced houses. When a house is listed above its fair market value, it will stay on the market much longer than it should and sell for less than it should. As the homeowner, you decide on the listing price, but your agent has a duty to help you realize your home's fair value.

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