Here's a bit of a Real Estate Fairy Tale, but it often comes true, (just with different characters).
Jack and Jill bought their Lethbridge house for 260,000 in 2008. They spent another 25,000 on fencing, landscaping, and basement development. Jack and Jill want to sell their house in 2013. Jack and Jill price their Lethbridge home at:
260,000 Price they paid
15,000 realtor fees
1,000 Lawyer fees
Jack and Jill Price their house at: 311,000
Bill and Sally are buying a home in 2013 (prices have gone down a bit since 2008). They want a 4 bedroom 2 bathroom home, 5 years old or less, and are approved up to $300,000. They see that they can get what they want for about 275,000. Billy and Sally see Jack and Jill's listing online, but they decide that it is way overpriced and they don't even look at it. Billy and Sally don't care what Jack and Jill paid, or what Jack and Jill put into their house. All Bill and Sally care about is what they can get for their money. Even if Billy and Sally LOVE Jack and Jill's house, there is no way the bank is going to loan them the money for it, as they need to have a certified appraisal at or above purchase price.
Billy and Sally find a house they love and make an offer. Jack and Jill's house expires after 6months.
The moral of the story is that buyers do not care about what a seller paid for a house, what they put into need, or what they want or need to get out of it. If you are selling your house, your realtor should show you comparables about what similar houses are listed for, and what they are selling for to help you determine the list price that will get you the most in your pocket, and the quickest sale time.
For a free, no-obligation, honest, Lethbridge Home Evaluation, please check out my website at