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It's a house, not your baby!

By
Real Estate Agent with Associate Broker, Momentum Realty

 

We are often blind when it comes to our children.  They are earlier to walk, to speak, to smile than other children. They are cuter and more precocious than anyone else can detect. Because we spend so much time with them, we fall in love and we fall in love hard! It is fair to say that a parent can easily lose their objectivity.
 
Our houses can be a little bit like children. Who hasn't puffed with pride when a neighbor admires your new paint job or your very green grass?
 
This pride, however, has no place in pricing your home.
 
Many listing appointments begin with the seller listing all the ways that their house is superior to others in the neighborhood.  That may sold house 2well be true.
 
At the end of the day ,however,  your house will sell for what it is worth. What you THINK it should sell for (based on your pride of ownership) really doesn't factor in to fair market value.
 
Buyers are very well educated on pricing, on neighborhoods, on cost per square foot, on schools, on land costs.  You name it, they have researched it.
 
Telling a buyer that they should pay more for your home than it is worth is what happens when a seller overprices. Buyers often avoid even looking at overpriced homes--'Why bother?' they think, 'that seller is delusional.'
 
IF, you can find someone who agrees with your crazy price and is willing to pay more than what your house is worth (unlikely, but possible), the appraiser is probably going to set you both straight. That is what they do...protect the banks interest by making sure emotions don't interfere with common sense (although, in fairness,  sometimes they get it wrong, too, as they are not infallible).
 
Make sure that your listing price is based on real data and not just a 'feeling' of what your home is worth. If you need help arriving at this price, and many people will, contact a Realtor® to help you.  You will sell your home more quickly, sail through the appraisal and still be proud of what a beautiful home you created!

 

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Comments(43)

Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Relaaax, folks! Life is too short!

Jul 17, 2013 12:55 PM
Jane Chaulklin-Schott
TEAMCONNECT REALTY - (407) 394-9766 - Orlando, FL
TeamConnect Luxury Homes - Orlando, Florida, 32836
Like the perspective views presented in your post, Holly. Unfortunately, it is many times difficult for a seller to be objective and emotionally unattached; difficult to make that important decision of price. I still recall a number of years ago when we relocated - Chicago NW Suburbs to Waikiki-Honolulu. Leaving O'Hare Airport, the flight flew over our community. Looking down at my house, I thought - all those homes look like little match-box houses from an aircraft window. But, it took me 7 months of living in Hawaii before I emotionally unattached.
Jul 17, 2013 02:15 PM
Rosie Crow
Serving Sugar Land, Richmond, Rosenberg, Missouri City - Sugar Land, TX
Exceeding Expectations. Delivering Results
Excellent post!
Jul 17, 2013 02:20 PM
Mike McCann Nebraska Land Broker
Mike McCann - Broker, Mach1 Realty Farm & Commercial Land Broker-Auctioneer Serving Nebraska - Kearney, NE
Farm & Commercial Property For Sale 308-627-3700

I would disagree with paragraph 5 based on my personal experience of selling 3 "baby"s over the years for well over market value because of the care my wife gave the inside and I gave the outside.

You just need to know how to do it and how to find the buyers hot buttons.  Never had a problem with appraisers either...although I admit I have not sold a home since this last bust. I do think we will see a significant increase in value though when we do sell and I expect us to get more for our home than any others in the area...

 

Jul 17, 2013 02:40 PM
Wayne Johnson
Coldwell Banker D'Ann Harper REALTORS® - San Antonio, TX
San Antonio REALTOR, San Antonio Homes For Sale

The old "pride of ownership" looks OK on the marketing pieces but sometimes the Seller's pride is bruised by market realities.

Jul 17, 2013 02:43 PM
Michele Peterson
Sellstate Realty First - Roseville, CA
Sellstate Realty First

Great post.. Listing price and final price can be 2 different monsters.

Jul 17, 2013 04:59 PM
MichelleCherie Carr Crowe .Just Call. 408-252-8900
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years
Yes it's easy to mix up the two as people feel emotionally connected to both houses and babies.
Jul 17, 2013 06:00 PM
Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Eighteen Years Experience in Brevard County

I have reminded buyers as well..you are buying a house, not having a baby.  Emotions can run wampant on buyer and seller side!

 

Jul 17, 2013 08:38 PM
Kelly Taylor
Keller Williams - Lakewood Ranch, FL

So true! I'm dealing with this situation right now. The owners are great people just not very realistic.

Thanks for the post!

Jul 17, 2013 09:02 PM
Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

We explain to a seller this place is where your kids grew up, you inherited it from Dad and Mom who worked like dogs to preserve, respect it. But after all the photos are removed from the walls, the memories tucked away, the family home is just a house. Sorry but we have to look at it Spock like objective. It is a commodity, like a car, watch, garden hose. And the real market value is not going to come close to the sentimental value. Or insurance replacement cost value either.

Jul 17, 2013 09:17 PM
Betsy Schuman Dodek
Washington Fine Properties - Washington DC Area Real Estate - Potomac, MD
SearchPotomacHomes.com

Holly,

Great post!!! Sellers have a very hard time detaching and being objective...our job is to overcome and show cold hard stats to prove our points!

Have a great day!

 

Betsy

Jul 17, 2013 10:20 PM
Brenda J. Andrew
ULTIMA REAL ESTATE - Willis, TX
Professional Realtor in Conroe/Willis, TX

I usually push the buttons a little when pricing if I do believe the seller can get a little more.  I have had good success so far.  Once an appraiser asked the seller how much they had done to the property and then they increased the price above others in the area - not for what we wanted, but enough.  I told the seller in the beginning we won't be able to get more than what it will appraise for.  She was happy with what she got.  I know there are times when there is such a high price you want to walk away.  Our market is changing so drastically here because of a waterpark coming to town that the over priced homes are now - right in line with current values.  Great post!

Jul 17, 2013 10:54 PM
Wayne Zuhl
Remax First Realty II - Cranford, NJ
The Last Name You'll Ever Need in Real Estate

Good morning Holly - great post! We often ask for a pre-appraisal if the seller is genuinely deluded.

Jul 17, 2013 11:17 PM
Chris and Dick Dovorany
Homes for Sale in Naples, Bonita Springs and Estero, Florida - Naples, FL
Broker/Associate at Premiere Plus Realty

Really good point Holly.  I never thought of pride of ownership to the extreme of not wanting to slight the baby in any way.  Good post.

Jul 17, 2013 11:55 PM
Donny Carter
Carter & Roque Real Estate - Frostburg, MD
Mountain Maryland Real Estate Expert

Good analogy! Thanks for sharing.

Jul 18, 2013 12:48 AM
Gerard Gilbers
Higher Authority Markeing - Asheboro, NC
Your Marketing Master

Well said. I made some of the same points in a comment the other day. Emotional often plays too much of a role in determining price.

Jul 18, 2013 01:15 AM
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

Most of the times( in my experience) sellers believe that their house worth more. It is perfectly understandable: it is their 'baby':) and it is often the biggest asset they have.

Jul 18, 2013 04:40 AM
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

I don't think buyers are very well educated on pricing, etc.  We have problems when they want to put pen to paper.  The point is that all have a movtivation and it's up to us to bring them to a meeting of the minds, despite where we might find them

Jul 18, 2013 05:20 AM
John Fauth
Coldwell Banker King Thompson - Grove City, OH
Turning your dreams into an address!

Had to turn down a listing a couple of months ago because the owner had bought a HUD home and was convinced that he deserved 100% return on fixing it up. His perception of his fix ups were a little overrated. He believed his home was worth about 30k more than the market was allowing.

Jul 20, 2013 02:53 AM
Nicole Doty - Gilbert Real Estate Expert
Zion Realty - Gilbert, AZ
Broker/Owner of Zion Realty ZionRealtyAZ.com

Hey Holly. I came over from Patricia Kennedy's re-blog. Very fun post. I've only been around Active Rain for a year so I definitely missed this the first time around. 

Sep 24, 2015 09:24 AM