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 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.

Staying Current with Market Value

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

• Professional opinions
• Industry (broker) response
• 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