What's It Worth?

In some ways that can be easier than it sounds. In other ways it's more difficult.

"A comparative market analysis (CMA) is essential to determine the value of residential property. Location and characteristics of the property are keys elements in determining value; therefore the basis for valuation is similar properties in your area. The CMA takes into account the amount received from recent sales (Usually 3 months) of comparable properties and the quantity and quality of comparable properties presently on the market. The desired end result is to find a price that will attract a willing and able buyer in a reasonable time."

What does all that garbage mean?

Simple: If you were thinking of selling your home, and your research showed that 5 identical homes on your same street all sold for cash deals last week, all at the same price of $200,000, guess what your home is worth? If you said $200,000, you just won a free email address here at www.GoldenGateLiving.com.

Congratulations!

That would be in a perfect world. However we live in a more perfect world known as Golden Gate Estates, where determining an accurate market value is more difficult than other areas of Naples, because we do not live in a 'cookie cutter' neighborhood. You may find one or two homes close to your home in size and amenities, but then age, location and curb appeal are just a few items that can be major factors when determining value. Therefore you have to be flexible and more importantly, honest with yourself.

Some owners hear of a home on the next street that sold for $289,000 and they just know that their own home is better, and therefore worth more money. Then they find out that the home in question was larger, had a pool, large barn, a guest house, or possibly twice as much land. It's important to know what the recent sales really are, and know the facts about the properties.

In a nutshell, your home is only worth what a buyer is willing to pay.

It's also important that the buyer actually have the ability to buy your property, and there is more information for that scenario at the 'Show Me The Money' section of this site.

So how does a buyer decide what to pay for your house?

Oddly enough, those sneaky buyers, do the same thing you did to determine the proper asking price. Can you believe that? They will not only look at what has sold recently, but they actually look at what else is presently available in your area to decide whether or not to even make an offer on your home.

When you are trying to determine what price your house should be offered for, you will also want to see what is presently on the market in your area with similar amenities to yours. The similar property that is actively for sale could be your neighbor, and best friend, however when that buyer drives down the street, that friend just became your competition.

It's real simple here: if there are two to three properties for sale on your street, identical to your property, and they are each on the market for $200,000, why would a buyer pay you $250,000 or more for yours? They wouldn't! So again, you need to be flexible and honest with your self. Your desire for profitability is irrelevant to market value.

Gee wiz, why?

It simply does not matter how much money you owe, what you paid, or how much money you want to make as a profit when the property is sold. Your property is worth what the market will bear at the time of sale.

If you only needed to sell your property for $150,000 to get the $50,000 profit you want, would it make sense to sell it for the $150,000 if the property was actually worth $200,000? If you said yes, we're taking back that free email address you won earlier! The same goes for the buyer. Would it make sense for a buyer to pay you $250,000 for your property because you wanted to make $50,000, when the property is only worth $200,000? Please say no, so we can give you back that free email address. Whew! That was close!

So let's sum it all up!

• Your property is only worth what a buyer is willing to pay.
• Your desire for profitability is irrelevant to market value
• CMA: evaluate similar properties to yours which have sold recently, as well as those presently for sale.

In the future, we are planning to have the capabilities at this site for you to search the closed sales in your area. For now, you can simply email us the address and description of your home, and we will you a list of recent sales that closely resemble your property. We will not contact you to market our services. We believe that when you are ready, and want us to work for you, you will call. If not, we are still happy that you visited us here, and glad we were of assistance to you.

We enjoy keeping people informed. Thank you.