Prudential Value Range MarketingSM Approach
PVRMSM is an alternative approach to home pricing. ** PVRM mirrors the natural buying / selling process. It can reduce the number of days a home is on the market. This model is attractive because it does not place the buyer or seller under abnormal pressure.
By marketing a home within the correct price range, PVRM addresses the concern of over- or under-pricing your home. This methodology . . .
- Attracts a wide pool of buyers
- Invites more offers than a fixed price
- Allows the seller to control the sales price
Fair Market Value
Fair market value is defined as the likely price a ready, willing, and able buyer will pay for a property when:
- The property is offered for sale on the open market.
- The property is marketed for a reasonable period of time.
- The buyer has a complete understanding and knowledge of the property.
Thus, the basic laws of supply and demand significantly affect what a buyer is willing to pay for property. It also affects the amount financial institutions or lenders are willing to finance.
Determining Property Value
This approach is based on the premise 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 Prudential Real Estate sales professional will analyze current listings and sale prices of similar homes in your area. S/he will consider properties (1) that recently sold, (2) are currently for sale, or (3) were offered for sale but didn’t sell. Although none of these properties is identical to yours, our professionals only identify those homes that have a high degree of similarity to your in their report.
A Prudential Real Estate sales professional will prepare a detailed description of your property and an estimate of the selling price range in today's market. This is known as the comparative or competitive market value of property.
Staying Current with Market Value
Once your property is listed, a Prudential Real Estate sales professional will routinely collect and review updated information to monitor the offering price. Observations from our sales professional may include . . .
- Professional opinions
- Seller motivation
- Buyer reaction
- Interest rates
- Time on market
- Current market conditions
- Availability of financing
- Competing properties
- Number of showings
- Condition of the property
- Industry (broker) response
Factors That Affect a Property’s Value
Affect Property Value:
- Time of year
- Style, condition, age, decor
- Property and neighborhood
- How quickly seller needs to sell
Do Not Affect Property Value
- What the owners paid when they built or bought the property
- Some improvements / upgrades the owners made to the property
- Cash proceeds the owners wants / needs from the transaction
- What friends, neighbors, or relatives say a property is worth
Competitive Pricing – The Pricing of Choice
The probability of receiving an acceptable offer on your property and completing a sale diminishes significantly when your asking price is higher than the current market value.
Factors That Determine Price Range
- Your property - its strongest selling points
- The competition - the asking prices of other homes for sale in your area
- The expired listings - homes offered for sale that did not sell