Why I Never Price a Home During the First Listing Appointment

One of the Biggest Mistakes Sellers Make

One of the most common questions I hear is, “What do you think my home is worth?”

It’s a fair question, but my answer usually surprises people.

I don’t give them a price.

Not because I don’t know the market.

Because I haven’t earned the right to give them an accurate answer yet.

After more than 23 years in real estate and nearly $100 million in career sales, I’ve learned that the worst thing I could do is walk into your home, glance around for a few minutes and throw out a number simply because it sounds good.

Anyone can give you a number. A great Realtor gives you evidence.

Every Home Has A Story

Every homeowner has invested something into their home.

Sometimes it’s a new roof.

Sometimes it’s replacement windows.

Sometimes it’s beautiful landscaping.

Sometimes it’s years of remodeling projects completed one room at a time.

Those improvements absolutely matter.

But here’s the difficult conversation I have almost every week.

The improvements that matter most to you are not always the improvements buyers are willing to pay for.

That’s not meant to diminish your investment.

It’s simply how buyers think.

They’re not buying your memories.

They’re imagining their future.

A Story I’ll Never Forget

Several years ago, I listed a home where the owner had invested nearly a quarter of a million dollars creating one of the most incredible backyards I’ve ever seen.

It looked like a botanical garden.

There were waterfalls, mature landscaping, winding paths and beautiful gathering spaces.

I explained to the seller that while the backyard was truly remarkable, it was unlikely the market would return every dollar they had invested.

Fortunately, we found the right buyer.

At the closing table, the buyers couldn’t stop talking about how much they loved the backyard.

The sellers were thrilled.

They felt validated.

The next day I stopped by to pick up my sign and lockbox.

A bobcat and excavator were already in the backyard.

The entire landscape was being removed.

The buyers were putting in a swimming pool.

Nobody was wrong.

The sellers loved the gardens.

The buyers loved the location and wanted something different.

That experience perfectly illustrates one of the biggest lessons in real estate. You’re selling your memories. Buyers are imagining their future.

Why Zillow, Your Neighbor And Even Some Realtors Get It Wrong

I often hear sellers say,

“Zillow says my home is worth…”

Or,

“My neighbor thinks we should list for another $25,000.”

The problem is that neither one is actually evaluating your home.

Zillow relies heavily on public data and algorithms. It doesn’t know the quality of your updates, how your home shows in person or whether your kitchen was beautifully remodeled or hasn’t changed in 30 years.

Your neighbors usually have good intentions.

But they also have a personal interest in protecting what they believe their own home is worth.

Neither one replaces a detailed market analysis.

My Two-Step Pricing Process

Every listing begins the same way.

Step One

I visit your home.

I listen.

I take notes.

I learn about every improvement you’ve made.

I evaluate the condition of the property, the layout, updates, deferred maintenance and features that don’t always appear on a property data sheet.

Step Two

Then I go back to my office.

That’s when the real work begins.

I compare your home against recently sold properties, pending sales, active competition and current buyer demand. I use multiple valuation tools, review local market trends and analyze what buyers are actually paying today.

Only then do I recommend a price.

I’m not asking you to trust my opinion. I’m asking you to look at the evidence.

The Market Changes Faster Than Most People Realize

One of the biggest mistakes sellers make is assuming the market today is the same as it was a month ago.

It isn’t.

I’ve seen market conditions shift in just a matter of weeks.

Right now, many move-in-ready homes are still receiving multiple offers.

At the same time, homes that are overpriced or need updating are sitting on the market much longer than sellers expect.

That’s why pricing isn’t about hope.

It’s about today’s market.

If you’d like to learn more about current market conditions, you may also enjoy my article on What’s Really Happening With Home Prices Right Now. (Internal Link)

Condition Still Drives Value

Today’s buyers place an incredible amount of value on move-in-ready homes.

Fresh paint.

Updated kitchens.

Modern bathrooms.

Neutral colors.

Clean spaces.

Decluttered rooms.

They want to move in and start living.

That doesn’t mean your oak cabinets, wallpaper or custom bar are “bad.”

It simply means buyers may see those features differently than you do.

If you’re curious why some homes sell immediately while others sit for weeks, be sure to read Not Every Home Sells in One Day. (Internal Link)

The Truth You Need To Hear

One thing I tell every seller is this:

I’m never going to tell you what you want to hear. I’m going to tell you what you need to know.

That’s my job.

Pricing your home isn’t about making you happy for one afternoon.

It’s about helping you sell your home for the best possible price in the real market.

Sometimes that means having difficult conversations.

But I’d rather tell you the truth before your home goes on the market than watch it sit for months because no one was willing to have an honest discussion.

Final Thoughts

Your home is worth exactly what the next qualified buyer is willing to pay for it.

Not what Zillow estimates.

Not what your neighbor hopes it’s worth.

Not even what another home is listed for.

The market decides.

My job is to help you understand what that market is telling us before your home ever hits the market.

If you’re thinking about selling your home in Lakeville, Bloomington or anywhere in the Twin Cities, I’d be happy to walk through my two-step pricing process with you and show you exactly how I determine your home’s value.

Call or Text Tom Sommers directly at (952) 994-7204.

Related Articles

• Why Online Home Values Are Outdated
• What’s Really Happening With Home Prices Right Now in the Twin Cities
• The Truth About Multiple Offers in the Twin Cities