I am asked to evaluate people’s homes every week. Some are just curious, others like to be kept informed of local market trends and their own values, and many are seriously beginning to think of selling their home. Others want to know as part of an overall family or estate planning process.
Most owners are not surprised at the general price range their home might sell in. However, some hope or expect to hear a higher value than what an objective analysis concludes.
It may be helpful to keep in mind that the market value of your home is not:
• What you have in it
• What you need out of it
• What you want it to be
• What it appraised for in refinancing
• What your neighbor’s house sold for
• How much your neighbor’s house is listed at
• What the tax office says it is worth
• How much it is insured for
• Based on memories and treasures
• Based on prices of homes where you are moving
• The highest list price suggested by one of the agents you are interviewing
The true market value of your home is what a buyer is willing to pay:
• Based on today’s market
• Based on today’s competition
• Based on today’s financing
• Based on today’s economic condition
• Based on the buyer’s perception of the home’s condition
• Based on location
• Based on how long it takes to sell
• Based on showing accessibility
For those thinking about selling someday, the homes that will sell are those that:
• Are well-priced at the start of marketing
• Are properly prepared before showings begin
• Are substantially in good condition, or are perceived as excellent investment value “fixers”
• Are well and thoroughly marketed
• Are easy to show with reasonable notice
• As a final reminder, there are things that a seller can and cannot control:
• You can control the price you ask
• You can control the condition of the property
• You can control access to the property for showings, inspections, etc.
• You cannot control market conditions, including buyer financing, appraisals, etc.
• You cannot control the motivation of your competition
• You cannot control value
Michael Edlen provides real estate counseling services to prospective buyers and sellers and helps over 40 clients each year to move. More tips and information are available at MichaelEdlen.com. He can also be reached at 310.230.7373 or Michael@MichaelEdlen.com.
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