How Much Is My House Worth?
So you are thinking of selling your home. You just talked to 3 different Realtors, 5 neighbors, and your best friend. The Realtors' estimation of your home's value ranges about $30,000. Your neighbors think you can get $20,000 more than the highest Realtor's estimate. And your best friend has sold 6 homes before. Who do you listen to?
We are programmed first to trust our friends and neighbors, and take their advice over the advice of a stranger (the Realtor). Who wouldn't, if they are good friends and neighbors they have probably never let you down before. They are most likely looking out for your best interest, and in this case selling your home for the most money. The question to ask yourself is this. What do your friends and neighbors do for a living? What is their area of expertise? If they do not spend their days analyzing the real estate market in your area then you should not be taking their advice over that of a real estate professional.
Do all realtors give good advice? The answer is most definitely NO! There are many Realtors in the industry who will do anything to get a listing. They will tell you what you want to hear, sugar coat the market conditions, and price your home $40,000.00 above actual value. They know you have locked into a six month listing agreement, and that after a few months you will get desperate enough to reduce your price to where it should have been at the start.
What do you do? Interview Realtors. Be sure to interview more than one. When you interview the Realtors be sure to ask them to show you the comparable properties that have sold within the last six months on which they are basing their listing price of your home. Take the time to make sure they are the most comparable to your property. When putting your home on the market, price it according to the facts and statistics. Overpricing your home will cause you to lose thousands of dollars in the long run.