In recent weeks, I have seen more and more houses that are not selling because they are simply overpriced. The market has changed and the days of 10 offers, all thousands over the list price are over.
It can be difficult to price your house, but it is important to remember that the value of your home is simply what someone is willing to pay for it. You must be realistic when setting the price and keep in mind that historical prices, emotional attachments and what someone else has told you your house is worth really have nothing to do with what you will actually be able to sell your house for.
Here are some thoughts on pricing for you to consider…
Statements frequently heard from sellers that really have nothing to do with their home’s value:
“Another agent said it was worth more…”
“People always offer less than the asking price…”
“The buyers can always make an offer…”
“My neighbor was able to get this price…”
“We paid more than that for our house…”
Other Factors That Do Not Affect Value:
Your Original Asking Price
Chances are you paid the market value at that time. Real estate markets are continually shifting, and today we have to deal with the current market conditions which may have changed significantly.
Over Improvements
Improvements should be made for enjoyment and personal use…not for re-sale. You cannot add a feature to a home, select it to match your life style, use it, then expect the buyer to pay your original cost.
The Owner’s Need for Money
The owner’s need for money or the fact that the owner is moving to a community where property is more expensive has nothing to do with the market value of the home.
The Seller’s Emotional Attachment to the Property
The seller’s memories, recollections of the good and sometimes even the bad times experienced in the property have absolutely nothing to do with market value. Market Value is what a willing buyer will pay for this home in this market at this time.
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Tags: san mateo county real estate, san mateo home owner, san mateo home value, steps to selling your home
Raymond Stoklosa, Broker/Co-Owner
Chela Stoklosa, Realtor/Co-Owner
Thank you for a thoughtful post. Sellers do need to consider the market. I was recently using a comparison to the stock market to point out that market value can go up or down. Most people understand it more that way. I do wish to pose one question though: remodels of kitchens and baths have been shown to add value, how do you feel about these renovations in the current market?
Thanks for your question!
Kitchen and bathroom remodels pose the same problem that remodels in general do: they add value, but generally not on a dollar for dollar basis.
That said, if the remodel of the bath and kitchen is done to enhance appearance (new paint), improve functionality (upgrade electric service), add creature comforts (insulation), or improve efficiencies (install double-paned windows), it can often be beneficial to the resale value. Just remember to add features and improvements that will be widely appreciated; avoid the unusual and quirky and be careful not to over improve; balance the market value of the property with value of the renovations.
Most importantly, don’t expect that a remodel done just because you are tired of the décor will increase the value of your home as the buyer’s often have their own unique tastes and aren’t willing to pay extra for yours!
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Cheers! Sandra. R.
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