I'll put a bit of a different spin on this as I've been both a buyer and seller. The current real estate market is highlighting a disconnect between that a house is worth and what a house costs. As a Seller, I am NOT interested in what my house is worth, I'm focused on getting the most money for my house (i.e. cost). As a seller I would be looking for comparable homes to establish my baseline. This I imagine is what most realtor do when they want to identify a "list price". As a seller I am emotionally attached to my home so I might add some $$ to the comps to get to my sell price. As a Buyer, I do Not care what the seller feels someone should pay for their house. I am only interested in the the end product of what I'm willing to spend my hard earned money on (i.e. worth). I do my home work which is different then what the typical realtor does. I look at the sales history of the home I am interested to see if the asking/list price is in line with the historical home price trends. For example, in today's market you can see we are still 25% above historical price trends (i.e. 2019-2022 was a bubble where prices were artificially inflated). I look for recent (last 1 or 2 years) major improvements (not maintenance like roof or HVAC replacement) like room additions, kitchen/bath remodels, etc. These add value to the home so I would be comfortable increasing above the historical trend line to accommodate the additional value. I look for maintenance history like roof and HVAC replacements if home is +20yrs. These are subtractions if they have not been done. I review the surrounding area to see if the community has improvement or detractors that impact the property value (adds might be new shopping, schools, etc. and negatives might be prisons, power plants, garbage dumps, etc). From this I can make an informed estimate of what the home is worth. I then can decided if the gap between what the house is worth to me vs what the seller wants get to decide if it worth making an offer.
All good points as I have mentioned many in the video. Emotion definitely leads people in a direction that may not be beneficial. Thanks for tuning into the channel.
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I'll put a bit of a different spin on this as I've been both a buyer and seller. The current real estate market is highlighting a disconnect between that a house is worth and what a house costs. As a Seller, I am NOT interested in what my house is worth, I'm focused on getting the most money for my house (i.e. cost). As a seller I would be looking for comparable homes to establish my baseline. This I imagine is what most realtor do when they want to identify a "list price". As a seller I am emotionally attached to my home so I might add some $$ to the comps to get to my sell price. As a Buyer, I do Not care what the seller feels someone should pay for their house. I am only interested in the the end product of what I'm willing to spend my hard earned money on (i.e. worth). I do my home work which is different then what the typical realtor does. I look at the sales history of the home I am interested to see if the asking/list price is in line with the historical home price trends. For example, in today's market you can see we are still 25% above historical price trends (i.e. 2019-2022 was a bubble where prices were artificially inflated). I look for recent (last 1 or 2 years) major improvements (not maintenance like roof or HVAC replacement) like room additions, kitchen/bath remodels, etc. These add value to the home so I would be comfortable increasing above the historical trend line to accommodate the additional value. I look for maintenance history like roof and HVAC replacements if home is +20yrs. These are subtractions if they have not been done. I review the surrounding area to see if the community has improvement or detractors that impact the property value (adds might be new shopping, schools, etc. and negatives might be prisons, power plants, garbage dumps, etc). From this I can make an informed estimate of what the home is worth. I then can decided if the gap between what the house is worth to me vs what the seller wants get to decide if it worth making an offer.
All good points as I have mentioned many in the video. Emotion definitely leads people in a direction that may not be beneficial. Thanks for tuning into the channel.