Everything will sell for the right price! I know…it is tempting to want to price your home for a price you think is realistic. That price is sometimes too high!
You say, “But, I know my house is worth more than my neighbors and that’s what I should get for it.”
And I say, “That’s great and very well may be true…let’s take a look and see what other homes just like yours are selling for.” Because only one thing determines the value of your house in today’s market. It isn’t how much money you need to profit after closing costs. It isn’t an emotional value because of the family memories, blood, sweat and tears you’ve poured into your house. It isn’t what your friends say it is worth. It isn’t even what a real estate agent says it is worth.
It IS worth what other homes just like yours are selling for within your neighborhood.
You ask, “Why?”
I say, “Have you heard of a mortgage?” I’m sure you have and you most likely still have one that you need to pay off when you sell your house. A mortgage requires an appraiser to determine the value of the house for the lender to provide money to any potential purchaser of your house.
This is important because if the appraiser doesn’t find any homes in your neighborhood that have sold for the price you want then they are legally and ethically obligated to report a lower value to the lender. There are ways to negotiate a higher than appraised price for your house. That is a negotiation tactic not related to an agreed upon listing price. When we look at this from a buyer’s perspective, why would we want to pay more for a house than the appraised value and start with negative equity? We can NEVER predict what will happen with tomorrow’s real estate market and would be a poor choice for any buyer.
You say, “What about cash buyers?” Cash buyers are not exempt from obtaining an appraisal except when the property is majorly, physically distressed. Experienced cash buyers will pay for an appraisal and negotiate the right price.
Back to the original point…EVERY house will sell for the right price!
Pricing also takes into account other factors. Location is very important. Is your house located on a busy street or a cul-de-sac? Is your house behind a busy shopping center or in the heart of your neighborhood? What amenities does your home have that others may not have? Does your house have curb appeal or is the front yard a wreck?
I trust this information is helpful and gives you a balanced perspective on how buyers view market value.
Call or email me for your private consultation and marketing presentation.
Cheers to your success!
Brandy Christensen / Realtor / Keller Williams Realty
M: 916-600-1239 / E: firstname.lastname@example.org