Monday, September 30, 2013
The valuation delusions-2
Thank you for your upgrades but I will still put my own valuation on the house based on my budget, mortgage preapproval and what the market is valuing based on the location of the house. I will create my own memories in that house and even though I may respect your memories attached to that house your memories are your memories and even if they are priceless to you it may not (definitely) be priceless to me or maybe even worthless. So although you have invested financially and emotionally in your house, it does not mean that I have to pay you whatever valuation you are putting for the house. This topic came to my mind as I have seen many sellers lamenting the fact that they put so much money into their house and then they are not getting the return that they hoped for. And just for the reminder, you as a seller will never get what you have paid for and did improvements because the seller will always want a higher possible price based on what they perceive as their priced procession and the buyer will pay the minimum possible price for what they perceive is the right value. I know that people become emotionally attached to their houses if they have fond memories but when it comes to selling you should detach your memories and give it a realistic valuation based on what the market is not what your emotions are. And this goes for everything else in your life.