Charleston, SC Posts

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The market value of your home is not...

We certainly understand that is a tough time to sell a house as a seller, particularly for those who purchased after 2004 competing with falling prices, new construction, foreclosures and short sales.  Sellers and agents should be reminded of the following when determining price or making counteroffers.

The market value of a home is not...

  • What you have in it--While we realize this is an important consideration for the seller, it is not for the buyer or appraiser.  Market value does not account for all that you have put into your home.  Trust me, I put $25K into my house over the last 4 years.  We sold it for less than we paid for it.  I feel your pain.
  • What you need out of it--Wouldn't it be nice if we could name our price? Those days are long gone.  Fact is for many sellers that need a certain amount to purchase the next house, however, that number doesn't change what a buyer is willing to pay for your house.
  • What it is appraised for--Appraisel is different from fair market value.  Value is determined by the price a buyer and seller agree upon. If you consistently get offers on the same price that you are declining, it's more than likely reflects fair market value.
  • What you heard your neighbor’s house sold for--Your neighbors probably lied.  I hate to say it but I can't tell you how many times, I've research properties that sellers said their neighbor sold their house for X price.  Well, X price was usually the listing price, but seller actually got Y.  Not to mention, the neighbor's house had a private backyard, hardwood floors, granite countertops and 300 extra square feet. 
  • What the tax office says it is worth--Is the tax assessor's office accurate about anything?
  • What it is insured for--Insurance value is determined in many ways.  One if based on replacement cost and with inflation over the last few years, it can often cost more to rebuild your home that it would be to buy an existing home.
  • Based on memories and treasures--While you love your home, the future buyer wants to make their own memories. Your memories do not have value to the future buyer.
  • Based on prices of home where you are moving--Do you want buyers making their offers based on where they came from? Probably not so you can see how this argument will not work for you.

Market value is calculated much differently today than 5 years ago.  When we consider comparables for a listing, we do look at sold comps, but its important to consider active listings as they are the real competition.  Contingent and pending listings show where buyers are biting. It's also important to consider competiting neighborhoods within the immediate area to make sure you are priced in the top 3 to avoid chasing the market on price. 

 

Michele Reneau - Military Relocation Specialist with Carolina One Real Estate in Charleston, SC. Contact Top Real Estate Agent, North Charleston, SC Relocation Expert, CRS, GRI, ABR. Licensed Realtor® in South Carolina at 843-849-5217 to list your home for sale or to purchase real estate in Charleston, Goose Creek, Summerville, North Charleston, Hanahan, Mount Pleasant and the surrounding areas in Charleston County, Berkeley County or Dorchester County, South Carolina. The Charleston Relocation Experts Team specialize in military relocation, first time homebuyers and creating marketing exposure to sell your home in the Charleston SC Real Estate market. We can also be contacted at info@CharlestonRelocationExperts.com. To view all Charleston Metro area houses for Sale Click Here and then click on Search for Homes.

Michele Reneau, ABR, GRI, CRS

www.CharlestonRelocationExperts.com

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Comment balloon 12 commentsMichele Reneau • September 30 2009 01:32PM

Comments

Very helpful.  I always say what your neighbor's house actually sold for will determine what you home is worth. In todays market this is killing home values with all the short sales and bank owns.

Posted by Larry Gray (Real Estate Consultant) about 9 years ago

You've burst my bubble.  MY home is always worth more than anyone else's.  : )

Educating sellers and buyers is a big part of selling a home.  

 

Posted by Mick Michaud, Your Texas Lifestyle is Here! (Distinctly Texas Lifestyle Properties, LLC Office:682/498-3107) about 9 years ago

Excellent post!  Everything you've presented is TRUE and should be shared with all of our Sellers.

Posted by Tom Boos, Providing the very best of service to Sellers and (Sine & Monaghan Realtors, Real Living) about 9 years ago

Larry-I love how neighbors evade questions with accurate answers until research shows the truth.

Mike-Sorry, mine too, but not when it comes to selling it :)

Tom-This is something we may include in our prelisting mailouts.

Posted by Michele Reneau, Realtor, GRI ~ Charleston, SC Relocation Experts Team (Certified Staging Professional (CSP) Elite Instructor) about 9 years ago

Michele-

Just like Google SEO, everyone thinks they "know" how to determine the value of their home, or at least, the metrics associated with value. It's great that these things change from time to time, it keeps the calculations current and relevant--and thus useful. Thanks for updating my knowledge on this.

Posted by DriveBuy Technologies (DriveBuy Technologies) about 9 years ago

Ian-The real estate market has ebbed and flowed in the 5 years I've been in business.  While there are always some basics, there are trends and other factors that always have to be considered. For example, in my market, home staging is a HUGE trend.  Vacant homes that are staged are selling in 60-90 days or less. 5 years ago, I hadn't even heard the word "staging."  Now, its a must in marketing when homes are competing with new construction and so many other resales.  SEO has definitely done the same.  I can't even keep up but glad there are people like you that do.

Posted by Michele Reneau, Realtor, GRI ~ Charleston, SC Relocation Experts Team (Certified Staging Professional (CSP) Elite Instructor) about 9 years ago

Hi Michele - Home owners are beginning to get this but it did take them a long time to realize that the value of their home is what a ready, willing, and able buyer is willing to pay for it.

Posted by Jon Wnoroski, Summit County Realtor (America's 1st Choice RH Realty Co., Inc.) about 9 years ago

What a great post to mark your return to Active|Rain. You must be finally settled enough to venture out with such a strong stance of what is and what is not the value of a home. Tweet...tweet.

Posted by James K Barath, CMPS, FICO Pro, Certified Military Housing Specialist (LeaderOne Financial Corp.) about 9 years ago

Jon-We have recently dealt with a seller that still doesn't get it.  After getting a full price offer, he decided they needed to net more money and countered above list price.  Of course the buyer walked away and unfortunately, we had to as well.

James-It's crazy how long it takes to get settled. I'm having a hard time keep up with twitter as well :)

Posted by Michele Reneau, Realtor, GRI ~ Charleston, SC Relocation Experts Team (Certified Staging Professional (CSP) Elite Instructor) about 9 years ago

Michele ~ Good post! Just the other day a seller said to me "I'm into this house for $XX so I have to sell it for more than that."  He should be checking your list!  I've always believed that it's worth what someone will pay for it.

Posted by Maureen Bray Portland OR Home Stager ~ Room Solutions Staging, "Staging that Sells Portland Homes" (Room Solutions Staging, Portland OR) about 9 years ago

Maureen-Feel free to pass the list along.  It's the beauty of the free market and right now supply is high and demand is lower.

Posted by Michele Reneau, Realtor, GRI ~ Charleston, SC Relocation Experts Team (Certified Staging Professional (CSP) Elite Instructor) about 9 years ago

Great post Michele.  I haven't seen you around our office lately.  Hope all is well!

Posted by Michael Johnson, Metro Charleston SC (Carolina One Real Estate) about 9 years ago

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