If your home is worth no more than what buyers are willing to pay…
How do you work out what this is?
What buyers will be willing to pay for your home; in today’s market (i.e. what they think it’s worth) will be determined by comparing your home to the others for sale right now.
In other words…
Today’s competition determines today’s value of your home
…Which when you think about it makes perfect sense, because no buyer can purchase a property that has already been sold…
They can only purchase a home that is currently for sale.
You already have first-hand experience of this
When you bought your current home, how did you establish it’s value?
- You probably had a budget.
- You probably had an idea of the kind of property you needed.
- You probably had an idea of where you wanted to live.
- You probably got out there and viewed all the properties that looked interesting within your affordability range.
- You probably (consciously or unconsciously) compared all these properties against one another, and ended up buying the one that met your needs and gave you the most value for the price paid.
Does all that sound familiar?
I hope so because I’m happy to report nothing has changed. House buyers still behave in exactly the same way today.
And if you think about it, this means selling your home is basically a competition…
…A competition (of both price & attractiveness) against the other homes your target buyers are also looking at.
Bottom line: Your home is worth no more than what buyers are willing to pay…And what buyers are willing to pay today is based purely on comparing your home to others currently on the market for sale.