Percieved Value vs. Market Value
A member of the ViewThisHome.com team, Ken Earnhardt, has written yet another brilliant blog with hyperlinks to some of the hottest websites in real estate. If you have a website that you would like for him to integrate into his blog, email ken@viewthishome.com. Enjoy!
Perceived Value vs Market Value
In today’s tough real estate environment the biggest challenge we have as a real estate professional is walking the thin line between a seller’s perceived value and the market value.
Here is an example:
I received a referral for a listing opportunity. So I did my usual due diligence before the appointment and looked at every SinglePropertySite in the surrounding neighborhood. This listing had promise so I set up the appointment. As I approached the FrontDoor (because we aren’t backdoor friends yet) I noticed the WellcomeMat had a strange writing on it. The writing said MakeMyHomeFamous . I knew right then that this listing appointment was going to be like none other. I couldn’t wait to ViewThisHome and see how to make her dream come true. As the seller took me on a VisualTour I began to see why she thought her home should be famous. As we explored the home I noticed that she had upgraded with hardwood floors, $10,000, upgraded the kitchen, $20,000, family time around the table, priceless !! Now I understood her perceived value, based upon the memories in her home, meant that her home should be famous!
It is difficult sometimes to tell someone their home is not “worth” what they think, but we should always respect their perceived value and then guide them to the market value.
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