Sentimental Value Vs. Market Value? Knowing The Difference Sells Homes
Sentimental Value Vs. Market Value? Knowing The Difference Sells Homes
By Pablo Santibanez
When selling your home today and in this market, it is critical to price your home properly for a successful sale. Gone are the days when you could list your home at the top of the market, selling your home above what you listed at with multiple offers. When pricing your home for sale, this is not the time to “test” the market. Most of the people question is how to calculate sentimental value. The only thing that will be tested using this approach will be your patience.
It is vital to know the difference between market value and sentimental value before listing your home for sale.
Market value is the price that an interested, informed, but not desperate buyer would be willing to pay and an interested, informed, but not desperate seller would be willing to accept on the open market assuming a reasonable period of time for an agreement to arise.
Define sentimental values is the inflated opinion of the value of your home.
It is very hard to be objective about what to list your home because of your emotional attachment to it. Unfortunately many homes today are listed at sentimental value in valuation. This happens because many sellers list their homes based on what they want to hear rather than what they need to here. The difference for some agents can be the difference in getting your listing or not.
Unfortunately, these overpriced homes sit on the market for months. These longer marketing times negatively impact statistics making it appear that the market is slower than it truly is. A buyer in today’s market has time to compare competing homes and are in no hurry to buy. They may look at dozens of homes and become very aware of what is priced right and what is not. Now as your home sits on the market for months you soon realize that you need to lower your asking price. You lower it and a few misconceptions could arise as a result. 1) The perception could be that there must be something wrong with your home that it has not sold yet and now your lowering the price. 2) You lowered your price let’s wait it out to see if you continue to drop it lower.
Here is what could happen if you do sell your home at a sentimental value. The buyer’s lender will have your home appraised and it comes in at market value which is lower than the sentimental value of property you agreed upon. Two things could happen at this point 1) is the buyer will need to make up the difference from what the home is sold for and what the appraiser appraised it at. 2) The other possible scenario is the buyer could think that you tried to take advantage of him/her and walk away from the sale altogether.
Here are the benefits of having a pre-listing Appraisal completed by an Appraiser before listing with a real estate sales expert.
The Appraiser will measure your home verifying it with city records this reduces your liability and brings up any discrepancies which could negatively impact your home’s value.
This floor plan can be used like new home builders in marketing your home online and on flyers and other marketing material.
The Appraisal can point out needed repairs, and additions prior to listing the home The pre-listing appraisal can be used as a negotiating tool once you have a potential buyer. It gives you something concrete to show your buyer. It’s an independent third party opinion of your homes value, and not just your sentimental value.
Get an unbiased advisor to assist you in determining the market value of your home? Lenders throughout the nation hire and depend on Appraisers to estimate the market value of the homes they lend on for a reasonable upfront fee. This could be the single largest financial decision you make in your life. Get informed before selling your home. The pre-listing appraisal will help you to determine what to list your home for prior to listing with a local real estate sales specialist. In this market it is not an option anymore, but a necessity.
Pablo Santibanez is the owner/founder of Fast Appraisals 4 U a Real Estate Appraisal firm with 2 offices located in the cities of Los Angeles and Stevenson Ranch. His firm is rated AA with the better business bureau.
We hope you found this article about “Sentimental Value Vs. Market Value? Knowing The Difference Sells Homes” helpful. If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page or our website at www.GROCO.com. Unfortunately, we no longer give advice to other tax professionals gratis.
To receive our free newsletter, contact us here.
Subscribe our YouTube Channel for more updates.
Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com. GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.
Alan L. Olsen, CPA, Wikipedia Bio
GROCO.com is a proud sponsor of The American Dreams Show.
The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business.
Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.
The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most.
They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..
American Dreams discusses many topics from some of the world’s most successful individuals about their secrets to life’s success. Topics from guest have included:
Creating purpose in life / Building a foundation for their life / Solving problems / Finding fulfillment through philanthropy and service / Becoming self-reliant / Enhancing effective leadership / Balancing family and work…
MyPaths.com (Also sponsored by GROCO) provides free access to content and world-class entrepreneurs, influencers and thought leaders’ personal success stories. To help you find your path in life to true, sustainable success & happiness. It’s mission statement:
In an increasingly complex and difficult world, we hope to help you find your personal path in life and build a strong foundation by learning how others found success and happiness. True and sustainable success and happiness are different for each one of us but possible, often despite significant challenges.
Our mission at MyPaths.com is to provide resources and firsthand accounts of how others found their paths in life, so you can do the same.
Thanksgiving is one of my favorite times of the year because it helps me to remember the many things I have to be grateful for: my family, relatively good health, friends, job, religious freedoms (I should probably use more often), and too many other blessings to list. Not to mention the Thanksgiving meal, mashed potatoes,…
In Conversation with Pamela Kan, President of Bishop-Wisecarver Corporation Pamela Kan has been the President of Bishop-Wisecarver Corporation since 1999. She is a highly respected leader in the manufacturing and engineering industry, and has been instrumental in growing the company into the successful business it is today. Kan holds a Bachelor of Science degree in…
Using Your Money for Positive Change, with Founder of Stickney Research Warren Stickney is the founder and principal of Stickney Research, a firm that specializes in the design and implementation of net income makeup charitable remainder trusts (NIMCRT). In this interview, he discusses his passion on how to use your money for positive change in…