"My house is worth more than that!"

Over the years (decades?!) I have had many conversations with clients where at some point they say something like: "But that's such a low offer, I'll be losing money on my house." And whilst I understand where they're coming from, it does highlight what can be a misconception about selling your house.

Valuing a house takes in many factors and this may alter depending on the property market and the national and global economy. What it doesn't - and can't - take into account is the value of your house to you. The pride or memories you have associated with your house give it a different value and for some people they can perceive a 'lower' valuation of their house as a reflection on themselves.

I know it seems obvious but it needs repeating sometimes - your house is only 'worth' what someone will agree to pay for it. For most people, whatever price they sell their house for is likely to be more than what they paid for it, so you'll be 'making' money on your sale. However, for some home owners they think the highest valuation they get for their house means that's what it's worth and then anything less than that is 'losing' money.

It can seem counter-intuitive, but accepting a lower offer for your house could also actually save you money. If you have a buyer for your house, you are in a better and stronger position to negotiate and progress your offer for the house you'd like to buy. For example:

Your house is on the market for £275,000 and the house you want to buy is £450,000. You get an offer of £265,000 and say ‘no’ because you'd 'lose' money. Someone who's ready to move comes along and beats you to it. If you accept the £265,000 and 'lose' £10,000, you could be in a position to offer £425,000 for the house you want and now you're an attractive buyer as you're ready to move. Now that 'loss' is actually a net 'saving' of £15,000.

That's just a rough example but I have seen scenarios like this play out.

Moving home can be such an emotional as well as financial decision and this could impact considerations when an offer is made. It can be helpful right at the start to set clear goals and work through different scenarios logically so you are prepared to make practical decisions rather than fraught emotional ones. This is why I'll often tell clients that the best offer isn't always the highest offer - that logic can work for all parties! 

If you want to get moving on, moving forward, and moving home. Get in touch.

Blog image: Image by Mohamed_hassan from Pixabay