Hi, I’m Ben Souchek with Home Downsizing Solutions. One of the most challenging issues that we deal with, not necessarily daily, but weekly or a few times a month is talking to a home owner that wants to sell a house, that have been in the house 30, 40, 50 years sometimes, see houses around them that are selling for a certain price, but sometimes don’t take into consideration the reality of what their home value truly is.
For instance, if we’re in a neighborhood where houses are selling for, say roughly $200,000 but those comparable sales have brand new kitchens with granite counter tops, brand new appliances, the bathrooms have been completely upgraded with granite counter tops, new windows, new HVAC systems, things like that. And then we talk to a home seller that has been in the house for a long time, and although the house isn’t beat up or trashed or anything like that, it just hasn’t been updated for a long time, and the homeowners will look at their house and say, well, if houses have been selling for around $200,000, surely ours should be worth that much.
I would probably take it personally if it’s my house that I’ve owned and tried to keep up for years and years, but the bottom line is, what we try and do is put ourselves in the shoes of a buyer. How is the buyer going to perceive value for that house? The reality is in most circumstances, almost every circumstance, if they look at the comps, the comparables, and see these two or three other houses that have sold for around $200,000 and that’s a gross price, not the net price that the seller put in his pocket, and they see all the new updates of these practically like new houses, and then they see the subject house of the homeowner that hasn’t really done any updating for a long time, that buyer is just not going to place the same value on that house.
If the carpet’s old, if the kitchen is dated, if the bathroom is dated, if the windows haven’t been replaced for 15, 20, 30 years the value is just not gonna be that $200,000. That’s a struggle sometimes to have people realize what the true value of their property is.
Again, on top of that, when we’re talking about a $200,000 house that sold for that amount on a traditional sale, a seller may only net 80 to 90% at best of that sale price because there’s gonna be the transaction costs to take into account. The commissions to the agent. The closing fees. The recording fees. All those other things that come out of that gross price, and even that sometimes is a challenge to explain.
So, if you are serious about wanting to sell your house, really take a good look and try to put yourself into the shoes of a potential buyer and how they would look at your house, to really see what that real value is.
If you have questions, if we can be of assistance, and if you want to sell your house, please contact us and we would be happy to take a look at your property and see what the real value is. We’d be happy to provide comparables so that you understand fully what we or what anyone else is gonna be looking at when they’re considering buying your property.
For additional details, please contact us at www.homedownsizingsolutions.com and we’d be happy to help you in any way that we can. Thank you very much.