By Barry Vincent, Broker
When I’m talking with a homeowner about selling their house, the conversation eventually gets around to price. That’s when a seller often says, “We need at least [a certain amount] for this house.” By the time of my visit, I have done some basic research on what similar houses have sold for in the neighborhood. As we’ve walked through the house and yard, I’ve been making mental adjustments to the numbers arrived at in my research.
If their number falls within the price range or close to the range I have in mind, we’re on our way.
But what if the homeowner’s number is well above the value of any similar recent sale in the area?
A house is usually a family’s single biggest asset. That may lead, consciously or unconsciously, to the assumption that the value of the house is always there as the ultimate backer of the family’s financial needs.
Buyers have their own word. They are looking for a “deal.” In fact, they are looking for the best bargain they can find that will meet the needs of their family. That is the eternal tug of war between sellers and buyers. Buyers have little or no interest in what the seller needs. They focus on their own needs, wants and dreams.
Real estate brokers live in this tension between sellers and buyers. The tension can be less painful if sellers and buyers understand how houses are valued. Here the broker becomes the educator. The broker’s first job is to get them to set the emotions aside. That’s seldom easy. Sellers often want to include a premium in the price for their memories and their past hard work on upkeep and repairs.
But the numbers are the numbers. Those numbers focus on what similar houses in the area have sold for in the past six months to a year. If there is a disagreement over pricing, an appraisal can provide an objective third opinion.
I sometimes tell sellers that we may have to sell this property twice. First, we have to sell it to a buyer. Then, if that buyer is getting a mortgage, we are going to have to sell it to the lender’s appraiser. That appraiser is there to protect the lender from loaning more on the house than it is worth and isn’t interested in anybody’s needs, wants, or deals.
Related Post: The 5 Factors of Value
We have to clear those hurdles before anybody can meet any of their needs or wants. That’s a win-win.
Ready for your “win-win”? Give me a call! Let’s find out what your South Nashville home is currently worth or if you’re ready to look for a home, let us help you make a great deal!