How will we decide the fair price of the property?

There are a few ways to gauge property price, each has its own use. Price per square foot is a good gauge, when the features of the houses are similar. Size, location, bedrooms/bathrooms, garage, basement condition, etc need to be pretty similar to make it very effective. That being said, it is my favorite valuation method, it is not hard to find properties with similar conditions, and honestly, a lot of these places balance themselves out, 1 has a garage but the other has an extra bedroom for example.

Overall, the only true gauge of price is a mix of market value and sellers financial position.

Market Value:

I typically simply define “market value” as the price a ready and able person is willing to pay. If these properties are sitting on the market for any length of time they are possibly over priced. We need to reduce the price to adjust it to fair market value. Then we need to reduce the price more to build in your instant equity.

Sellers Financial Position:

In this market part of the reason there is so much inventory is because there are people who have their house up for sale that really cannot afford to sell. They have it listed for way too high of a number, and they cannot afford to really reduce the price because they have no equity in the property, and little cash in the bank. We have little opportunity to do more than speculate the sellers financial position, but we can find a few clues that help to make an educated guess.

Contact your Hermann London Group representative now to request a spreadsheet laying out the price per square foot property pricing method for a property you are interested in.