How to value my house: how much is my house worth – Be realistic
“People only see what they are prepared to see.”
-Ralph Waldo Emerson
Part 1: Be realistic
How much is my house really worth? How to value my house may seem difficult to answer when it comes to selling your house on your own, but it is not. It is important that you value your home objectively and not subjectively, leaving your preconceived notions and emotions at the door. It’s hard to do, but you need to see your home as someone else’s home and without the personal emotions that can cloud your judgment. Yes, you know your home better than anyone, which will help you value your home and sell it, but you can’t let that information have too much influence on the value you set for your home. In this article, we’ll discuss a few points on how to value your home from the many strategies detailed in our eBook Sell Your Home Now: Without a Realtor and Save Thousands.
Although you will likely sell your home on your own, the number one frustration most real estate agents have is the fact that home sellers always believe their home is worth more money than it is. This is understandable, as we seem to overestimate the value of our personal belongings and possibly underestimate the value of other people’s belongings. Now, I’m not saying that some real estate agents don’t try to price houses low so they’ll sell quickly, save on marketing costs, and get a quicker commission. But the fiduciary responsibility of a real estate agent is to sell your house as quickly as possible while getting the most money for your house. If a real estate agent really lives up to his or her responsibilities, the price you set should be the best price based on your research and not motivated by any other factor. The last thing they want to do is price a house too high, unless they’re just trying to make you feel good and win your business, which means the house won’t sell and they’ll have to have that awkward conversation with you in a month. more or less to reduce the selling price.
With this in mind, you need to be realistic when pricing your home. Ultimately, the true value of your home will be what someone else is willing to pay you for your home. Remember, the price of your home is what you’re asking someone else to pay, but the value of your home is what you and the buyer ultimately agree the home is worth with the consumption of a contract. If you set a high price initially and have to keep lowering it, potential buyers might see it as desperation and wait to see how much you lower your price. It could also increase your home’s “time on the market,” which could send the message to potential buyers that something is wrong with your home.