Your home may be your castle, but as strangers traipse through your sanctuary, chances are they don’t see things quite the way you do. The fact is that it’s extremely difficult for homeowners to emotionally detach themselves from the property and become reality-based when it comes to setting a sales price.
With that in mind, let’s look at four false factors that many sellers apply when determining the listing price of their home:
• You can recoup your decorating dollars. The truth is that it doesn’t matter how much you paid to have those walls faux painted. Chances are the prospective buyers are wondering how much it will cost to repaint the walls. If you are hoping to recoup any remodeling dollars, it will depend on the project and the workmanship. A shoddy remodeling project will actually diminish the value of your home.
• Your current mortgage balance helps determine what you will ask. Wrong again. What you owe and what your home is worth today are not at all related.
• You need to cash out with a certain amount in order to get into your replacement home. Again, the reality is that the buyer doesn’t care what you need. Buyers today have access to resources that will tell them if the home is properly priced. Padding the price will do little except to help generate a faster sale for other area homes.
• You can get as much or more than other neighborhood sales. Setting the proper price does factor in recent area sales. However, no two homes are alike, so it’s important to compare apples to apples. One neighborhood home could have features you aren’t aware of which would substantially increase (or decrease) its value over your home.
Establishing the true value of a home is a combination of science and art. While technology aids in providing us with facts and figures, the “art” aspect of pricing a home is where my professional knowledge and assistance provides a valuable service. Knowing how to weed out the unnecessary, unreliable information, smell trouble brewing before it derails a transaction, and how to create an individualized, comprehensive marketing program to sell a home is a valuable aspect of working with a real estate professional. However, the bottom line is this: although you’ll be furnished data on sales figures for comparable area sales and help with analyzing those stats to arrive at a suggested listing price, the decision as to how much to ask for your home is always up to you
For answers to your real estate questions . . . call me!