Life In Style: List Values & Home Values Aren’t The Same
There are a lot of factors that go into determining a house’s true value. Jason and Shannon have lived in their current house for years and they’ve decided they’re outgrowing the space. It’s time for them to sell their home and find a new one! That being said, they’re having a hard time deciding how much to list it for.
They celebrated their first Christmas as husband and wife in this home. They brought their first child home here, and he took his first steps down their hallway. Then they brought their second son home here! So many wonderful memories that they will cherish forever. But they cannot let those feelings determine how much they want to ask for the home.
On the other side of town we have Blake and Danielle. Blake and Danielle are married house-flippers. They rehab homes and sell them to new owners. They have no sentimental value tied up in their homes. They simply want to make a decent profit. They do this by knowing the current market well and making sound financial decisions when choosing the new upgrades for each home.
These two scenarios are where list values and home values come into play. Let’s look at the differences.
A house’s list value is the dollar amount that is closest to the house’s actual sale value. How much the house is truly worth when the size, location, and materials are taken into consideration. Nothing emotional, just physicalities.
Home value on the other hand does take into consideration the emotional aspect. This is a bit more relevant for the buyer, however. When you’re looking to buy a home, you need to prioritize considering the list value, plus the memories you could make there. Does it have the perfect place for the Christmas tree? Is there a space already dedicated for a nursery or home office? Does it have that large formal dining room that’s perfect for large family gatherings? That definitely matters to the buyer.
So, Jason and Shannon have come to terms with the fact that their family memories do not translate into a higher list price. They have decided to list the home at a price that makes sense for the current market. They also saw the great home value in Blake and Danielle’s latest flip and decided to place an offer! Since Blake and Danielle have no sentimental value tied up in their list price, they’re able to get a great deal!
When you’re buying or selling a home, always remember: Moving is more than a dollars and cents issue!
If you’ve got questions regarding the impact of the shift on your search or the value of your home, we’ve got answers!
Life In Style, the bi-monthly publication from Team Real Estate, is dedicated to helping homeowners make smarter decisions about their homes and lifestyle. It features original news, commentary, tips, and analysis from leading industry experts. To be considered for inclusion in future episodes, email email@example.com.