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