The Realty Geek's Blog

Perception of Value

This blog post is a good reminder that home values are be based on hard facts as well as emotional factors, depending on whether it is the homeowner, homebuyer or appraiser who is assessing value. If you're buying or selling a house, keep these points in mind as you consider home values and prices.

 

Perception of Value


Perception of Value differs for everyone.  What I perceive as value might not be on your top ten list.  So let's see what perception of value means in three different ways:


A seller values his or her home higher because of the emotional attachment they have for it.  The "sweat equity" they put into the home painting, changing hardware, laying new flooring  or planting those lovely planting rosesroses should bring more money when they sell the home.  Most of the time it doesn't - it just makes the home easier to sell in a shorter period of time.  So the perception of value the seller sees may not be realistic.


When a buyer views a home, the perception of value is in the condition, size and location.  That purple room the seller's daughter loves does nothing for the buyer .... in fact the value is very low because the buyer knows that room must be painted.  The seller loves the eclectic neighbors but the buyer sees the value of the home as being lower because of those tire flower pots, odd rusting "yard art" and bowling balls lining the flower beds.


Then we have the appraiser who will use hard facts to set value.  Yes, condition, size and location will play a part in value with the appraiser.  If no sold comparables are available then no matter what value the seller feels his/her home is worth, the appraiser isn't going to be swayed.


And there's one more value in Texas that both buyer and seller must be aware of ..... the appraisal district's value that is used to set the amount of taxes one has to pay each year as PROPERTY TAX.  This value can be protested.  As an owner you wish to keep your tax appraisal low to control the PROPERTY TAX.   This value has NOTHING TO DO WITH THE VALUE of the home on the open market.


So just remember "Value is in the eye of the beholder!!"eyeballs with dollar signs

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Home and Hearth Realty, Inc.

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Gwynn Teal Carpenter ... the Realtor with an Austin Attitude - laid back with professional results!

Making real estate fun and exciting in Austin, Texas and the surrounding area. Home and Hearth Realty helps you find your way in the real estate maze. We talk with you in a relaxed informal manner and guide you through the process whether you are selling your home or purchasing one. We work for you, and explain everything in terms you can understand.

Check out my real estate philosophy - www.homeandhearthrealty.com

Austin Board of Realtors and San Antonio Board of Realtors

Questions about real estate, Austin Texas, relocation or anything else will be gladly answered if you shoot me an email to: 

gwynn@homeandhearthrealty.com

Comment balloon 2 commentsEric Proulx • January 20 2012 05:31PM
Perception of Value
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