$65,000 kitchen renovation will not bring the market price of a $375,000 home to $440,000. Don't assume you can add that amount to your asking price and get trapped by making your house the most excellent and priciest in your area.
SALE PRICE VS. MARKE S. MARKET VALUE
If you have a ready-to-buy, bank-qualified buyer willing to pay a price you will accept, referred to as "sale price." It is an objective fact without influence. This sale price transaction, once complete, will influence the market value of homes in the area. You determine the price of your home by looking at comparable local sales provided by a professional real estate agent, your property's condition, and the current supply and demand. What a piece of property might sell for based on features and benefits in a competitive market, and the current supply and demand of similar homes is its market value. You might value your home more than a buyer's pay or market price. Balanced markets will equalize market price and market value. The perspectives of buyers and sellers also come into play when placing value on a home. Let's say your home has abundant mature trees — a plus in your mind. But a buyer who loathes raking leaves will see that as a negative. If you just spent $20,000 to replace your roof, you might think you can set a higher price, but buyers already expect the roof to be in excellent shape. Proximities to schools, bus routes, and medical facilities can create value that specific buyers are willing to pay for. Buyers look for the right deal, but what they are willing to pay or what the bank is willing to finance has limits. Strategic pricing is
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