Are You Over-Valuing Your Home?
Everyone wants to make a profit from the sale of their home. How much profit is too much, though? Field enough low-ball offers and you could find yourself wondering “what is my home worth, really?”
Here are three telltale red flags that probably mean you’ve been over-valuing your home this whole time:
Other Houses in Your Neighborhood Sell for Far Less
Have you ever been so sure you were right about something, but everyone you talked to seemed to think you were wrong? Sometimes—not always, but sometimes—that’s a good tip-off that the problem isn’t everyone else. Sometimes the problem is you.
Similarly, if you’re having trouble selling your property, it helps take a look around you and see what other people are doing. Are other houses in your neighborhood selling when yours isn’t? Are they in comparable condition, of comparable size, and of comparable age? What are the other houses in your neighborhood selling for? If the answer to those first few questions is “yes” and the answer to that last one is “a lot less,” then the problem should become obvious.
Your “Value-Adding” Amenities Aren’t Drawing Buyers
When a homeowner is looking to add value to their property, most of the time they try to do it by making remodels, renovations, and repairs to add amenities that future buyers will find attractive. Just because you believe an amenity increases your home value or is desirable to buyers doesn’t mean it is, however.
As evidenced by that bad haircut you had in high school, not everyone thinks the same things are cool that you do. Try taking a step back and being objective as possible. Do your home’s amenities have broad appeal? Are they useful to a wide range of people, even—and especially—those unlike yourself? The more niche and idiosyncratic your home’s amenities are, the longer it will end up taking you to find a buyer who values them to the same degree you do.
The Valuation You Received Came from an Iffy Source
When it comes to determining exactly how much our home is worth, many of us have little choice but to trust the valuation of a realtor. This becomes an issue when the realtor in question is more interested in buttering you up than giving you an accurate appraisal. Or, even worse, maybe they just plain aren’t good at their job.
Want to get a good idea of what your asking price should really be? Don’t take the word of the first realtor you ask. And definitely don’t go with whatever realtor estimates the highest number, either. Just because you like the idea of selling your home for that amount doesn’t mean you’ll actually be able to. Your best bet is to consult with multiple realtors and see how close their individual valuations are. Extra-high or extra-low outliers are usually best off ignored.
