If You Were A Buyer How Much Would You Pay For The House You’re Currently Trying To Sell?

By
Real Estate Agent with Keller Williams Realty Louisville East (502) 664-7827

This almost requires an out of body experience. Sellers understandably attach higher value to their home. But buyers look at actual comparable sales. If you objectively look at actual sales in your area, how much would you pay for your own house?

Trust The Comparable Sales

An excellent Realtor will show you recent comparable listings and sales in your neighborhood. These “comps” will indicate the true value of your house. It is often difficult to conduct a non-emotional analysis of the value of your house, even when the comps clearly illustrate that it’s worth less than what you believed it’s worth.

Remember How Buyers Are Evaluating Your House

Buyers and their Realtors are looking at the same comps. They will also look at the all the active listings in your neighborhood and even comparable neighborhoods in your area.

Sadly, but realistically, buyers do not attach the same emotional value to the house as you do. They are oblivious to the down payment money you may be losing, or all the time and money you may not recoup for all your home improvement projects.

Rumours Don't Count

Buyers don’t determine value based on rumors of neighborhood values. Many times a neighbor who sold their house is embarrassed how low they sold, so before they skedaddle from the area they’ll make up a high number.

Asking Prices Are Wishful Thinking. Actual Sales Are Reality.

Buyers and their Realtors determine value based on actual recent sales. Sellers usually don’t have access to sales history. Calling “For Sale” signs or checking active listings on the internet does not determine value. Active listings are still active, often for months or a year. Asking prices are wishful thinking until an actual sales price is agreed upon and the house actually sells and transfers ownership.

If you price your house too high in this slow market, you are effectively putting your housing life on hold. It may cause you to postpone a job relocation, miss out on a school district, even fall behind on payments.

So What To Do? How Do I Price The House Right?

It is sometimes hard to make a non-emotional decision. Examine the sales prices of comparable houses that your Realtor provides you. Have an “out of body experience” and imagine yourself as a buyer checking your house against the same “comps”.

Conclusion: Price The House Right So You Can Move On With Your Life

Posted by

 

 

Dave Halpern, Realtor

The Dave Halpern Real Estate Group

Keller Williams Realty Louisville East

Website David.DavidHalpernRealtor.com

(502) 664-7827

 

 

View Dave Halpern's profile on LinkedIndave_halpern twitterhalperndave_facebookDave Halpern QR CodeLouisville Foreclosure Realtors Dave Halpern

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Rainmaker
4,432,971
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Good post. Sometimes buyers do not listen when you tell them that buyers are going to look at other homes on the market and know that the price is too high.

Jan 21, 2011 10:58 PM #1
Ambassador
2,759,162
TeamCHI - Complete Home Inspections, Inc.
Complete Home Inspections, Inc. - Brentwood, TN
Home Inspectons - Nashville, TN area - 615.661.029

Good post! Folks that want too much will watch their property set like a bump on a log...

Jan 21, 2011 11:11 PM #2
Rainmaker
567,505
Bob Jakowinicz
National Realty Centers Livonia--Bob Jakowinicz - Livonia, MI
Michigan Real Estate Agent-- MI RE Adventures

Dave, great point!  How much would they pay and actually if they overpriced that is what they are paying to keep it.

Jan 21, 2011 11:13 PM #3
Rainmaker
221,382
Richard Strahm
American Foursquare Realty - Lansdale, PA
Lansdale and North Penn Real Estate

Cold hard facts.  That's what the sold comps are.  When I point out that their desired price would be the highest ever paid in the area, I always ask, "Would you pay more for a house than anyone ever has before?"

Jan 21, 2011 11:18 PM #4
Rainmaker
526,160
Dave Halpern
Keller Williams Realty Louisville East (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

Gita - Thanks! The comps are key. This way we show them what the entire market is sayoing, rather than just our individual opinion.

Michael - Bump on a log, I like it.

Bob - Thanks! "Paying to keep it" is a great way of describing an overpriced listing.

Richard - Cold hard facts, indeed. Comps are the reality.

Jan 21, 2011 11:29 PM #5
Rainer
118,516
Noah Levy
Coldwell Banker - Highland Park, IL
Coldwell Banker Highland Park IL

Dave

Great blog!!!  A seller does need to think how much would they pay for their own house....based on the comps that have sold.

Jan 21, 2011 11:33 PM #6
Rainmaker
817,588
Dan Edward Phillips
Dan Edward Phillips - Eureka, CA
Realtor and Broker/Owner

Excellent post Dave, 'food for thought' for the seller in todays market.

Jan 21, 2011 11:48 PM #7
Rainmaker
1,554,516
Brian Madigan
RE/MAX West Realty Inc., Brokerage (Toronto) - Toronto, ON
LL.B., Broker

Dave,

 

This is short and to the point, but very, very accurate.

 

Brian

Jan 22, 2011 12:33 AM #8
Rainmaker
657,117
Joetta Fort
The DiGiorgio Group - Arvada, CO
Independent Broker, Homes Denver to Boulder

It's a very hard point to get across to most people. Once in awhile, I get lucky with someone who says, "You're the expert, let's list it where you say!"

Jan 25, 2011 08:29 AM #9
Rainer
478,183
Not a real person
San Diego, CA

Even as a home inspector, people like to me about how much they are paying for a property. All I have to do is look at the property records and the MLS listing after they close escrow. Sellers go high and buyers go low, but the truth be told in those records.

Jan 26, 2011 01:12 PM #10
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Rainmaker
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Dave Halpern

Louisville Short Sale Expert
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