Selling Price

A home’s selling price can be influenced by a number of factors and may not be equal to the “market value.” Properties that are not sold at fair market value typically, but not always, bring less money. For example, if a seller is compelled to sell his home as a result of a divorce, health reasons, financial problems or other causes, he may be willing to accept an offer below market value in exchange for a faster sale. The sale of property between family members may be completed at a lower price because of personal reasons. Job transfers and a variety of emergencies could also result in sales prices that are not necessarily market value as a way for sellers to achieve quicker relief. We have all heard instances where someone has hung his hat on a “sweetheart deal” that may have been unusually low or high, but certainly did not reflect the market value because it was not conducted in the open market and not at “arm’s length.” Sales of this type many times include certain terms or concessions that require adjustment in order to reflect the true market value. A clustering of sales prices could be an indicator of a trend in market values.

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