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.