When a homeowner tries to determine the value of their home, they will consider a number of factors, the price they paid, the value the bank has placed at the time of last mortgage renewal and what other homeowners have said they got for their property. This will give the own some idea of the value of the property in general. When a sales representative is determining the value of a home, they are only concerned with one person opinion.
“Another Agent Said it was Worth More”
The agent wants your business. Some will suggest a high price to get the listing, then, when the home doesn’t sell, they will ask to reduce the price.
“ We Spent Thousands in Up-grades”
The buyer did not see the home before the up-grades, only the finish work and sees this as part of the home not an addition. Simply, you can not expect to recover all the money spent on up-grades. If an up-grade improves the home beyond the average home in your area, you can recover between 10% to 25% depending on the work done. If the improvement is something the other homes already had (for example an finished basement) there is nothing to recover, that is the standard for the area.
“Our Home is Nicer than those Houses”
This is subjective. What is great to one person is not always great to another. We have all walked into a home and wondered “how could they paint it such an awful colour”
“People Always Offer Less Than Asking Price”
Mostly this is true. However, it is not the first offer that matters, it is the last. Correctly priced homes are more likely to generate serious buyers willing to negotiate a fair price.
“We Have to Get That Much Out of Our Home”
If this is far above the real value of your home, you may not be in a position to sell at this time. The Buyer will be saying “I can only afford this much for the home”
“My Neighbour was Able to Get His Price”
Even in similar homes, there no grantee of a similar price. Each home is different to each Buyer. Also, not everyone is truthful about the price they got for their home. Have your Agent check the price.
“The Buyer Can Always Make an Offer”
This is not always true. Buyers looking for a home will start with price. If it is over priced the Buyer will not want to see it, let alone make an offer.
“We Paid More Than That for Our Home”
It is a fact that sometimes home go down in value. A change in market conditions, more homes available than Buyers, or even a change in your neighbourhood (i.e. a school closing, new homes that have been built) can reduce the value. Past price is not a guarantee of current value.