figure out your motivation to sell.
Next, keep in mind there’s no direct dollar-for-dollar correlation between upgrade costs and market value. For example, just because you spend $100,000 on a kitchen remodel doesn’t mean your $1.5 million home will now be worth $1.6 million. Don’t fall into the trap of thinking you can simply add renovation costs to your asking price—especially in the Bay Area, where buyers are savvy and price-sensitive. You might end up with the nicest, but also most overpriced, home on the block.
SALE PRICE VS. MARKE S. MARKET VALUE
If you have a ready-to-buy, bank-qualified buyer who is willing to pay a price you will accept, that is 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 at a higher price than what a buyer will pay, or its true 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 an abundance of mature trees—a plus in your mind. But a buyer who loathes raking leaves will see that as a negative.
If you just spent $15,000 to replace your roof, you might think
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