Whether buying or selling a home in Ormond Beach, what the seller paid for the house is irrelevant

It’s true that a seller needs to know what he or she still owes on their home. The mortgage balance determines the potential equity or whether a short sale will be necessary.

But neither the purchase price nor the balance owed has a bearing on what the house will sell for in the current market. That number – the fair market value – is mostly determined by recent comparable sales and what buyers are willing to pay.

Any seller who insists that their homes should sell for a higher price because they paid more may be sadly disappointed. Potential San Antonio cash house buyers will simply move on to a similar house that’s correctly priced at fair market value.

On the other side of that coin are the buyers who think they should pay less because the seller paid less when they purchased the house. Some buyers have an idea that only so much profit is acceptable.

They too will be disappointed, because some other buyer will come along and pay fair market value.

How is fair market value determined?

By comparing the subject property to similar homes in similar neighborhoods which recently sold.

What is a similar home? One that:

  • Is approximately the same size and age
  • Has the same number of bedrooms and baths
  • Similar construction type – block or frame
  • Has the same quality of doors and windows, floor coverings, fixtures, counter tops, and cabinets
  • Offers the same amenities
  • Has been similarly maintained

What’s a similar neighborhood? One which:

  • Is in the same school district
  • Is similar in location with regard to shopping, medical care, recreation, jobs, airports, power transmission lines, freeways, and anything else that might affect value
  • Is similar with regard to home maintenance – or pride of ownership

What does “recently” mean?

In a rapidly changing market, it can mean within the past month or two. When the market is steadier, it can mean within 6 months, or even a year.

Do you want to know the fair market value of a specific house?

Buying or Selling a Home in Ormond Beach….. What’s my home worth

Call me. I’ll be glad to help. 386-275-1950

 

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