No where is the professionalism of a REALTOR more important than in the crucial service of providing pricing assistance to both sellers and buyers.
The market value of real estate is the highest price it would bring if the sale occurred under normal market conditions. It is also based upon an "arm's length transaction" wherein four conditions must be present:
- Neither buyer or seller is acting under duress.
- It has been offered on the open market for a reasonable length of time.
- Both buyer and seller are aware of property's potential, including assets and defects.
- No unusual circumstances are present.
Price is the amount of money presently asked for a home or property. Price may or may not be reasonable, and may or may not reflect the market. As with any marketable commodity, the law of supply and demand affects the real estate. Property values will rise as demand increases and/or supply decreases. The effect of supply and demand is often seen in the value of older homes in very desirable areas, where demographic (population size and distribution) trends may bring heavy demand for them. A home in such an area, even if it required extensive remodeling, might have increased in value several times because of the increased demand. Thus, it should be remembered that demand relates to the supply of a particular type of property in a given location and not for property in general.
For more information, give Cherry Hill real estate professionals a call at (618-457-8177), or contact Cherry Hill Realty, Inc. here. A Realtor will contact you. |
