Erroneous Pricing

   Some properties may not be properly priced. You should know this before making an offer:

• What have similar properties sold for in the immediate area?
• How long were they on the market?
• How does this one compare?
• Is it over-priced, under-priced, or fair value?
• What type of market is it - is it a Seller's, Buyer's or a Balanced market?

The main factors that affect market value are...

• Location:
     As in every transaction of modern life, you will pay for convenience. The availability of community amenities, such as public transportation, parks, stores, churches and schools will raise the market price in that area. Other factors like quality and consistency of neighbourhood planning, future development plans and local zoning will also affect the property's market value.
  
  
• Property:
     The style, layout, size, age and quality of construction of the building
  size, shape, privacy and landscaping of the yard will all be considered in the proper pricing of a home.
  
  
• Condition of the Home:
     The first appearances of the home, the floor layout, the age, quality and appearance of fixtures, general overall condition of the main systems (roof, furnace, electrical system, central air, etc.) will ultimately discern the value of a home.
  
  
• Comparable Properties:
  The asking and selling prices of comparable neighbouring homes.
  
     The best way of establishing a range of value for a property is to have your Realtor prepare a general market analysis of the neighbourhood you are interested in. This will give you a good overview of the current market and will show what comparable properties have been selling for recently.
  
  
• Market Conditions and the Economy:
     The market is always fluctuating, and depends on a variety of conditions. The type of market in your area depends on factors like the number of homes currently on the market, number of people looking to buy in your area, the state of the local and national economy, current financing rates.
  
  
• Market Conditions:
     No matter the condition or desirability of a property, its value will be affected by current market conditions. Here are the various conditions you may encounter and how they will affect you:
  
  

  Balanced Market:    The number of homes on the market is equal to the number of buyers (supply equals demand). In this market, prices are stable and homes sell within a reasonable period of time. It is a calm atmosphere with Buyers having a satisfactory number of homes from which to choose. Seller's Market:    The number of Buyers exceeds the number of homes on the market (demand greater than supply). In this market prices are increasing and homes tend to sell quickly. As a Buyer you will probably have less negotiating room and may experience competing offers when trying to purchase your home. Buyer's Market:    The supply of homes exceeds the number of Buyers (supply greater than demand). In this scenario prices tend to drop and the properties stay on the market longer. As a Buyer you will have more selection and less competition and thus be better able to negotiate a good deal.

   The more you understand current market conditions, you will be more able to position yourself as a Buyer. It helps to know if you are in a Seller's, Buyer's or balanced market when deciding what price to offer.