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The eyes of the beholder Have you ever wondered who sets the sale price on homes that are "For Sale?" Are you familiar with the expression "Beauty is in the eyes of the beholder?" When homeowners decide to sell their home, the price that they establish for their home is usually the result of a careful market study of prices in their area for homes similar to theirs. Working with their real estate agent, a price is then set which reflects a "fair market" amount; that is, a price which they believe a buyer would be willing to pay if fully informed of all the pertinent facts, and which they, the sellers, would be willing to accept. This price is usually determined by comparing two types of information: the prices actually paid by other purchasers for similar homes recently sold, and the prices of similar homes currently "For Sale" (the competition). When buying a home, it is important that the purchasers view a sufficient number of homes in order to satisfy themselves that the price being asked for the home of their choice is acceptable. Once the buyers agree to purchase a home at an agreed upon price, the final value of the home is established. In effect, it is the buyers who determine the final value, as evidenced by their willingness to pay the agreed upon price. Beauty truly is in the "eyes of the beholder." |