It’s unfortunate, but many sellers fall into the trap of setting the price of their home based on some of these common misconceptions:
“I bought my home for XX dollars, it must be worth more now”
Fact is, markets change. Your home may be much worth more or much less, than when you bought it.
“But we made so many improvements” – Wrong!
Some homes depending on size or neighbourhood are over-improved. Many improvements add value, while others are a matter of style or taste.
“It would take this much money just to replace it and get my investment out of it” – Not quite.
Replacement cost is not a valid measure of existing property value, just as a used car isn’t worth the same as a new one, no matter how well it as been maintained.
“I need this much for my home”
The market is only concerned with what your home is worth now, not how much you need to get for your property to break even.
“I just had a refinancing appraisal done”
Many lenders will appraise your home higher than what your home may sell for in order to lend you more money, i.e. if you need additional money for personal needs. The truth is your home is only worth what someone else is willing to pay for it.
The first step in pricing your home right is getting a CMA (Comparative Market Evaluation.)
This is a comparison of other properties that have sold in your area, comparing size, age, condition, and other variables of your home. The CMA will also show the listed and sale prices of these properties. Click Here for more info on a CMA for your home.**Nothing on this website should be confused with financial or legal advice. If you need this, or any other type of advice, please seek the help of a competent professional. In addition, because real estate laws change all the time and differ from state to state, and even city to city in the same state, everything in these pages should be considered general marketing advice and ideas. Please see link to full Disclaimer at the bottom of this page.