"Market value is what a buyer in any given market is willing to pay for your home given the current conditions... based on what other homes are available and who is looking to buy at that particular time."
I coorelate market value to a credit report, it can change frequently and it just depends on the day the credit report is pulled.
In the Ann Arbor area marketyour house ABSOLUTELY had to be "priced to sell". The market is changing and CMA's need to be updated every couple of months.
For instance, I sold a home in Meadowinds, in June for 380,000. (yes that is the correct legal spelling) It sold in 4 days and was listed at 385,000. It was owned by a decorator and the colors were wild. Her daughter's bedroom was orange, the gathering room was purple. Nice home, on a cul-de-sac. But, obviously the new owner was going to need to paint.
Because I was able to get a contract so quickly the neighbors next door trying FSBO, called me. There house was in much better shape, neutral decor, better floor plan. I listed it at 398,000. (Their price as a FSBO) This was at the end of July; we reduced to 389,900 a few weeks later. Then we reduced it again to $385,000.
We had 5 offers on it all around the $365,000.
I convinced my sellers on offer number 5............"Look, the market has spoken". All five offers are coming in at the 365,000.00 range.
So only a few months later, in Meadowinds Subdivision, the second home sold for much less than $389,900.00 The second home had a better floor plan, less work to do, same square footage, both with finished walk-out basements sold for less.
In Ann Arbor the market peaks in July every year. We experience over 74% of our closings by the end of August. What happened?
Market values change, it is a moving target.
Rationally one would expect to get the same value or higher on the more updated home, with more amenities and less work. Yet, the market spoke at $365,000.00.
Again: "Market value is what a buyer in any given market is willing to pay for your home given the current conditions... based on what other homes are available and who is looking to buy at that particular time."
Current homes in Meadowinds are priced at: $328,000.00 and $298,000.00
Other homes the Missy Caulk TEAM has sold in Meadowinds are:
1956 Harley
1980 Harley
1930 Harley
1968 Harley
