Do you believe that your Cumming GA real estate agent under priced your home?
A recent survey by RISMEDIA showed that 76% of home sellers believed that their property was worth more than the listing price recommended by their real estate agent.
Interestingly enough, 68% of the buyers involved in the survey were certain that those same agents had overpriced the listings by as much as 10%.
Who’s right? Everyone!
Why? Because they all determine “value” in very different ways.
Virtually every seller I’ve worked with in the last two years has honestly believed, deep in their heart, that their home was worth much more than the price at which I (CMA in hand), the multiple real estate agents they interviewed before me, the buyers and the bank appraiser ultimately valued it. And, to a point, I understand. These sellers loved their homes and love is blind.
Have you ever looked at a friend’s husband and wondered just exactly what it is that she sees in him?? In your eyes, he’s too tall, too short, too chubby, too skinny, talks too much is or is just too quiet for your taste… Yet, in her eyes he is the perfect man and the best husband on the planet. It’s the same with houses!
When you have lived comfortably in a home, raised children in a home and made happy memories in a home, you feel that it is a warm, special place full of love that must be evident to all who enter (not so true!). Sellers don’t always smell the litter box or see the tattered, outdated wallpaper or that notice the fact that virtually every surface in the house needs to be de-cluttered because they are looking at their home through the eyes of love. They’ve been happy there for years, why wouldn’t everyone else love it too?
When you add to this the fact that the seller remembers EVERY PENNY that has been invested in the property (yep, even ugly carpet costs money…) they place a value on their home that reflects their “total investment” both financial and emotional.
Because of this, I never argue with a seller about the “worth” of their home. I simply say: “I’m not telling you that your home is not worth that amount. What I am saying is that the current market simply won’t support that price (black & white numbers of a CMA don’t lie) nor will it appraise for that amount. This is a function of the current market, not a statement about your home!”
Like the end of any love affair it is a tough step to take, but if a seller can get past the emotional arguments and allow themselves to understand that the buyers who view their home will not be “in love” with their house, and will be seeing it as it truly is (warts and all), they are one step closer to getting their property sold and moving on.