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"It's time to sell," you tell your spouse. How you approach the Selling Process is critical in this market. You may think that you are well versed on what the market will bring - you know, because you spoke with your neighbor (who's cousin just made a purchase), or maybe your hairdresser mentioned that she also has a REALTOR(R) client that talks a lot during her hair session...and, of course, your home is nicer than any others in the area. You have newer carpet and fancy wallpaper, maybe just painted with decorator colors (and wrote a big check to the decorator!)
All that is nice, but may not make your home any more valuable. Maybe more marketable, sure, but not necessarily worth more. To the appraiser, who, by the way is the ultimate decision maker, wall paper is wall paper and paint is paint. His or her approach will be this, "Will the market actually PAY MORE for this paper than the other?" If the answer is "NO", then no additional value is given. Will a buyer PAY MORE for fancy landscaping or exotic plants? Probably not. Again, increases marketability - the house will look good and likely sell quicker but not for more than the market supports. At the end of the day, when a interested buyer comes along with an offer on your home, the Lender will require the appraisal in order to be sure the bank's interest are covered - they are NOT working for the seller. And the house is still only worth what the house is worth.
But, "Let's start high and see if we can get it." Sure, you can try that - but you are also sabotaging your sale. If it's priced too high, it may scare potential buyers away. They never look at the home - and when Mr/Mrs Seller have exhausted themselves and move the price down to something reasonable, those Buyers may have already made a purchase. They are gone from the market arena. You have to also know that many buyers that are working with REALTORS(R) will have information on the market via MLS data, other sources - if a home price is skewed out of proportion, both the buyer and the REALTOR(R) may simply disregard the home and cut it from the list of possibilities right from the beginning. You never even have a chance at those...With the help of professional services a REALTOR(R) can provide, decide on a reasonable market range of your home. Add a little for good luck, if you'd like. But keep it reasonable. And, if a viable Buyer comes along, work real hard to make the deal stick. Now is not the time for the Sellers to play "Hard Ball." Don't worry, it's OK - the market is very cyclical. Sellers were in the driver's seat for a long time. It's the Buyer's turn...
Does all this mean that as Homeowners, we can't have the simple enjoyment of fancy wallpaper and new carpet? Can't have fun picking out "cool" colors for our home? Of course not! It does mean that as we make improvements or updates, we keep in mind that these improvements are for US! Just like buying an extra pair of shoes - you didn't need them but you WANTED them and made the purchase. Wear them, show them off to your friends, love them! But at the yard sale, they are just used shoes.
Happy Selling!
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