“People only see what they are prepared to see.”
-Ralph Waldo Emerson
Part 1: Being Realistic
What is my house really worth? How to value my house may seem difficult to answer when selling your house on your own, but it is not. It is important for you to value your house objectively and not subjectively by leaving your preconceived notions and emotions at the door. It is difficult to do, but you need to look at your house as if it is someone else’s house and without the personal emotions that may cloud your judgment. Yes, you do know your house better than anyone else, which will help you value your house and sell your house, but you can’t let that information over influence the value you set for your house. In this article we are going to discuss a few points on how to value your house from the many detailed strategies in our eBook Sell Your House Now: Without A Real Estate Agent and Save Thousands.
Although you likely will be selling your house on your own, the number one frustration most real estate agents have is the fact that house sellers always believe their house is worth more money than it really is. This is understandable, as we seem to overestimate the worth or value of our personal belongings while possibly underestimating the worth or value of others peoples belongings. Now I’m not saying that some real estate agents don’t try to price homes low so they sell quickly, save on marketing costs and can receive a commission more quickly. But a real estate agent’s fiduciary responsibility is to sell your house as quickly as they can while getting you the most money for your house. If a real estate agent is truly upholding their responsibilities, the price they set should be the best price based on their research and not motivated by anything other factors. The last thing they want to do is price a house too high, unless they are just trying to make you feel good and win your business, which means the house won’t sell and they’ll have to have that uncomfortable conversation with you in a month or so to reduce your asking price.
With this in mind you need to be realistic on pricing your house. Ultimately the true value of your house will be what someone else is willing to pay you for your house. Remember, the price of your house is what you are asking someone else to pay, but the value of your house is what you and a buyer ultimately agree the house is worth with the consummation of a contract. If you set your price to high initially and have to continue to reduce your price, potential buyers could see this as desperation and wait to see how far you will reduce your price. It could also increase the “on the market time” for your house, which could convey the message to potential buyers that something is wrong with your house.