Phil Hoover at the Boise Blog made some very insightful comments about home values that I thought were worthy of a front-and-center reference:
The simple truths of real estate value are:
- Your home isn’t worth what you need to get.
- Your home isn’t worth what you want to get.
- Your home isn’t worth what you owe on it.
- Your home isn’t worth what your neighbor says it’s worth.
- Your home IS worth what a buyer will pay for it.
- If no one will part with their money to buy your home, the value is undetermined and you will still own it!
Well said! How often we have found ourselves in a no-win situation this past year. When we have priced a home appropriately, to sell, the neighbor has been known to accuse us of sending the neighborhood values down the river. If we were to price it where the neighbor perceived value, however, it would sit and sit and sit… We would become the guys that can’t sell homes to save our lives. I recommend we all pin Phil’s “simple truths” to our foreheads.