Let me start by saying I completely love my job. Helping sellers move on to the next phase of their lives is exciting. Whether they are downsizing, upsizing, moving into a retirement community - no matter the reason for the move, I love being a part of the process. Before we get to the point of loading the truck, however, we have to start at the beginning - pricing the home to sell.
Time and time again, I tell sellers that the value of their home is determined by the current market. I research the market prior to coming out and find homes that have sold, expired, or are actively on the market similar to their home. I carefully consider amenities my seller's home has that the others did not, or visa versa. I spend time culling through this data to determine a range in price I believe their home should sell for. We sit at that kitchen table drinking iced tea and discussing the details of the market analysis I've performed, and I tell them where I believe their home should be priced. That's when I hear that dreaded phrase "We think our home is worth more than that".
Don't get me wrong, I completely understand how that happens. When you're selling the home you brought your babies home to, had Uncle Dave's 70th birthday party in, held weekly cub scout meetings in for your son, you get emotionally attached. You think there should be some value in the emotion.
The other thing that causes sellers to utter this phrase is the remodeling they've done. They spent $50,000 putting in the new pool 3 years ago, replaced the carpet with hardwood floors just 2 years ago, and put a granite countertop in the master bath a few months back. They feel they should be able to recover the cost of those repairs dollar for dollar. Unfortunately, the market doesn't see things the same way sellers do. The price buyers are willing to pay determines the market, and just because you paid $200,000 for your home 11 years ago and have added $60,000 in upgrades doesn't mean the sales price should be $260,000. Upgrades do help with value as long as they are reasonable for the neighborhood, but expecting dollar for dollar returns on those investments will lead to dissapointment.
When it comes time to move on with your life, it's always best to hire a professional real estate agent to study the market and give you an analysis of your home's worth based on facts, not emotions. If you price your home within the range of current market value, you help your chances of selling it faster than to overprice it and miss buyers looking for those new listings.
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