As agreed, we have done research to determine accurate value for your property that will result in a successful sale within a reasonable period of time. You will find enclosed the Market Value Defined.
First, we looked at the prices of other comparable homes that are currently on the market. These will be our competition. You will find data sheets enclosed for properties that most closely resemble your home.
Relevant Current Listings - The Competition:
Ultimately, the actual selling prices of comparable homes determine the current value of your home. A buyer will most likely finance the purchase of your property. When the bank sends an appraiser to the property we have to be able to give the appraiser the comparable sales that we used to place value on your property. Fair market value is established by what ready, willing and able buyers have been willing to pay for other similar homes. We have enclosed information about comparable homes that have sold recently and would most likely be used by the bank in their appraisal of your property.
Relevant Sales – Real Buyers that Bought:
These are the ‘comps’ we used to determine the proposed asking price for your property.
Market Value Defined
The American Institute of Real Estate Appraisers, in its Appraisal Terminology and Handbook, says:
(1) As defined by the courts is the highest price estimated in terms of money which a property will bring if exposed for sale in the open market, allowing for a reasonable time to find a purchaser who buys with full knowledge of all the uses to which it is adapted and for which it is capable of being used.
(2) Frequently it is referred to as the price at which a willing seller would sell and a willing buyer would buy, neither under abnormal pressure.
(3) It is the price expectable if a reasonable time is allowed to find a purchaser and if both seller and prospective buyer are fully informed.
Market Approach Defined
The approach used in completing this competitive market analysis is the “market approach.” As the name implies, it is a method that examines the overall activity in the market as it might affect your property. Information on properties which are presently on the market, that have recently sold, and those that did not sell have been gathered in order to assist you in establishing a competitive asking price.