How to Determine the Market Value of my Home?

Now that you have made the decision to sell your home, it is time to determine its asking price. Since the procedure by which it is calculated can be somewhat complex, you will want to seek the guidance of a trained professional – your REALTOR®. And there is no better place to start than Nextage Realty Professionals. Should you price your home too low, you could potentially cheat yourself out of thousands of dollars. Conversely, if you price your home too high, potential buyers will bypass it in favor of something more reasonably priced. Leaving your home on the market for too long could have the adverse effect of giving it an unfavorable reputation. The object is to choose a price that is neither too high, nor too low. The asking price should be both accurate, given its market value, and fair. Your REALTOR® is familiar with the Arizona market and all of its changes. Take advantage of their knowledge and expertise.

What is Market Value?

Market value is the highest price that a willing buyer and seller, not under any compulsion or outside pressure, agree upon. Determined by outside influences, such as social and political factors, as well as the economy, market value is the price that your home should sell for in the current market. Your home’s fair market value depends on a number of other factors including, how it was built, its location, the condition it is in, the size of both the house and the property it sits on, as well as the price of other similar homes that have recently sold in your neighborhood. The price you choose will also be determined by the tempo of the market, the public’s confidence in the current economy, and competition within the market. Ultimately, the Phoenix, AZ market will determine the value of your home, not you, making the services of a trained professional who understands it and all of its complexities all the more worthwhile. Don’t hesitate to ask your REALTOR® any questions you may have – their knowledge could save you thousands of dollars, and perhaps, net you a profit.

How is the Market in Arizona?

Historically, the home values in Phoenix and Prescott, Arizona have gone up each year. Up until 2006, home values were on the rise, and many Phoenix residents were selling their current homes and upgrading to better homes!  In 2008, home values in the Valley of the Sun began to show signs of major decline. The graph below illustrates the rise of the boom with the internet age.  So, how long will it take for the Arizona market to normalize?

Negative Equity:

Back in 2010, CoreLogic® data shows Arizona as the 2nd highest percentage of negative equity in the nation at 51%.  Negative equity is referred to as “under water” or “upside down” properties.  This means 51% of all mortgaged homes in AZ were upside down. The trend is changing in 2012, temporarily. Some believe there is another wave of foreclosures that have yet to hit because of rising gas and food prices. Inflation is causing people to either put food on the table, or make their house payment. This is why having an experienced agent is necessary today. NRP agents know where the foreclosed homes are, and how to combat a negative stigma in any neighborhood!

In 2010, Phoenix, AZ had over 550,000 underwater borrowers making it the single largest underwater metropolitan market in the county. (2010 CoreLogic®)

Competing in today’s home selling market is tougher than ever!  Working with an experienced agent; one who is armed with the best data, can help you obtain the most money for your home.  Our agents work with the lenders and banks to help secure you the best possible price for your property.