Page 86 - Selling secrets 5 18 2023

prospective buyers, so that you can understand their
motivations, anticipate their actions, and negotiate with the
buyer from a position of advantage.

Next, there is also no direct dollar-for-dollar correlation
between upgrade investment and market price. A $25,000
kitchen renovation will not bring the market price of a
$275,000 home to $300,000; don’t assume you can add that
amount to your asking price and get trapped by making
your home the nicest, but also priciest, home for your area.

SALE PRICE VS MARKET VALUE

If you have a ready-to-buy, bank-qualified buyer who is
willing to pay a price you will accept, that is referred to as
the “sale price.” It is an objective fact without influence.

This sale price transaction, once complete, will influence
the market value of other homes in the area. You determine
the price of your home by looking at comparable local sales
provided by a professional real estate agent, your
property’s condition, and the current supply and demand.
What a piece of property might sell for based on features
and benefits in a competitive market, and the current
supply and demand of similar homes is its market
value. You might value your home at a higher price than
what a buyer will pay or its true market price. Balanced
markets will equalize market price and market value.

The perspectives of buyers and sellers also come into play
when placing value on a home. Let’s say your home has an
abundance of mature trees—a plus in your mind. But a
buyer who loathes raking leaves will see that as a negative.
If you just spent $10,000 to replace your roof, you might

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