Whether you’re a buyer or seller, the value of a house is an important aspect of a real estate transaction. However, this number won’t always be equal to the asking price or the figure you pay. The professionals at Metro Appraisal Associates say it’s important to understand the differences between market price and value for real estate properties. This premier appraisal company provides the Rochester, NY, area with reliable evaluations of residential and commercial real estate and explains how price and value differ.
The definition of market price is the monetary figure agreed to by a property's seller and buyer. However, it might not represent the house or commercial building's market value or the price for which it originally was listed. Once a sales transaction takes place, the final market price will have a direct effect on the market value of similar properties in the area. Factors that influence market price in addition to value include supply, demand from buyers, and the condition of the building.
The figure for value is based on the local real estate market, including supply, demand, and location as well as features of the particular property. While these factors are similar to those that influence market price, the primary difference is the seller or buyer can accept a lower or higher price, depending on their view of the property’s value. For example, if a buyer considers a pool to be an essential feature of a property they would like to purchase, they might be willing to pay a higher price for a house that has one, regardless of whether the home’s overall market value is lower. Likewise, a homeowner who made high-end renovations to a house, such as hardwood flooring and marble countertops, might place a greater value on their property than a buyer who prioritizes a better location.
If you need appraisal services for a sale, mortgage, taxes, or other purpose, count on the team at Metro Appraisal Associates in Rochester, NY. Call (585) 225-3042 to schedule an appointment for a residential or commercial appraisal and visit their website for more information about their services. Check their Google+ page for updates from the business and additional insight from their certified appraisers.