How do you really know what your house is worth?

There is a well know thought which has been around for as long as anyone I know can remember; the value of something is determined by what an educated person is willing to give to another person who is equally educated and isn’t under duress, and is willing to accept the terms of the buyer. In other words, a house is worth only what a buyer is willing to give,and a seller is willing to take. I hear interesting stories from consumers and real estate agents on what and why something is worth what they think it is. Sellers expect agents to tell them what the value is, and agents love to impress the seller and talk. The bottom line is no one can predict what will happen in the future. You may wonder, ‘what is an agent good for, if they can’t tell what a house is worth’? Truthful, all we can do is provide good evidence of what has sold in the past, what the competition is asking, and the status of the market conditions. With that information, most anyone can make an educated and calculated guess what someone might pay for a house. With that said, I suspect there are many Appraisers who would disagree with me; and, there has been many times in the past that I’ve disagreed with them. Of course, I think I’m right, but it doesn’t turn out that way, and it doesn’t really matter anyway…the appraiser always wins. Still, I think a buyer and seller are the ones who establish the real value; albeit, an appraiser does have an obligation to the mortgage company to show a sale is valid and reasonable. Getting the best dollar out of your house requires solid research, ideal physical condition, great marketing, and common sense with negotiations in discovering common ground. It seems simple enough. Unfortunately, the science of facts and numbers are enhanced, and sometimes distorted, by the art and finesse of intangibles. This is where experience and education really count. The best outcome is usually drawn by the most informed seller. It’s always good to do the homework, learn as much as you can, and find a smart real estate agent to help put it all together. The Dream Home Process™ is a great tool to help you discover the best path for your situation, and it’s exclusively offered through the Ratchford Group. Tony Ratchford Broker, CRS, SRES, ABR, co-owner Keller Williams Realty Sioux Falls