"I'm Not Giving it Away!" - or The real market value of your home. - LuxHomesMN

“I’m Not Giving it Away!” – or The real market value of your home.

By Myra Jensen

“I’m not giving it away!”

Other versions of this:

“I refuse to lose money.” (Sorry, the money has already been lost, the market took care of that.)

“I’ll wait until I can get my money out of it.” (That could be awhile, but it is certainly an option, make sure you eat healthy and exercise, it will add years to your life.)

“They couldn’t build this house for what I’m asking.” (That’s why they’re not building, it’s less expensive to buy – although more and more people ARE building right now because they can see we have hit bottom and inventories are low.)

“Buyers want everything half price” (No, they want it at market price, and they are learning that it is no longer really a buyers market and are getting smarter about making market price offers.)

It may sound harsh, but you have been living under a rock if you don’t know that the past few years in real estate have been brutal.  Yes, the market seems to be stabilizing, and yes, the buyers are finally filling the streets and are out looking for houses. Pending sales are up. But right now, when we typically see more homes hitting the market, inventory is DOWN!  Why? Because sellers are not willing to “LOSE MONEY”

I want to be clear, it is not just the sellers that owe more on the house than it’s worth that are saying this. I can appreciate that you may not have the means to bring $30,000 to closing to be able to sell your house. This is directed at the sellers that actually DO have equity in their home (and yes, they are out there), have money in the bank, want to move, but are paralyzed by their inability to accept how the market works.

This is how it works:

The market value of your home is determined by a buyer.

I think I need to say that again so it will sink in.

The market value of your home is determined by a buyer.

What that means is – a real estate agent can tell you what they “think” your home is worth, your county can tell you what they “think” your home is worth, your bank can even tell you what they “think” your home is worth, but at the end of the day, it’s the buyer that will KNOW what your home is worth. Your home is worth what a buyer is willing to pay for it. It’s that simple.

Now that doesn’t mean if a buyer walks up to you and says – “here’s fifty bucks, let’s call it a deal”, that you should take it and run. What it does mean is that if your home is properly marketed and presented to the active pool of qualified buyers, and priced within striking distance of the market, you will receive an offer (or possibly, in this market, multiple offers) that will show you what the market value of your home actually is.

This offer may be less than you expected, or less than you want, but it does not mean that you are giving your house away. It means that you are selling your house for the current market value. And when you sell your house, and turn around and buy a new bigger and better house, you will also be buying THAT house for the current market value (what YOU are willing to pay for it). AND with the added benefit of today’s low interest rates!

So you need to decide – do you want to stay and protect the money that does not exist, or do you want to move forward and buy your dream house while values are still low but on the brink of rising? With interest rates as low as they are right now, it’s at least worth having the conversation with your Realtor® and Lender and getting an idea of what it would take to make it happen.

Let us know about your home and we can give you an idea of what it should sell for in today’s market.

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