Thursday, December 11, 2008

In A Buyer's Market Values Are Determined By Buyer's

While speaking with a new client yesterday, who is considering selling his house, a question/comment came up. As we were discussing com parables in the neighborhood he produced a print out of what he thought his home was worth.

I tried to explain to him the value of his home is determined by what a buyer is willing to pay in TODAY’s housing market, based on the comparison of the home in question with all of the others on the market, in the same neighborhood and others that had been sold that were comparable to his. I continued to explain what things did not affect the value of his home. After spending an hour with this gentleman I decided to make a list of items that do not effect the value of a home and create a list to include in my pre-listing packet;

What you paid for the house
Your remodeling costs
The amount of cash you need to buy your new house
What you want for your house
What I say your house is worth
What other real estate agents say your house is worth
What an appraiser says your house is worth
What the tax assessor said your house was worth
What Zillow says your home is worth
What Trulia says your home is worth

Your home is only worth what a buyer is willing to pay for it.

Since this fellows home was in a market area with a lot of foreclosures his potential price prohibited him from placing it on the market at this time.

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