Many buyers are struggling with the value of their home. Everyone wants to pick a peak market time to select their "sale price" but pick the bottom of the market to buy. First rule: a home is an investment.
If you purchased stocks of IBM 20 years ago at $xxx and today those shares are selling for 10 times as much then what price would you sell them? You sell them for today's market value. On the other hand, if you purchased airline stock in the late 1990's and sold it today, what price would you expect to receive? We accept that when the value of stocks decline then we lost money. It is that simple.
The problem arises because of sentimental value. We, in our minds, value ourselves with the value of our homes. "I have $225,000 in equity." Reality this is like having $225,000 in the stock market. It is only on paper. It is not real until you actually have the green in your hand.
Your home is worth what a ready, willing and able buyer is willing to spend. No more, no less. Yes, in 50 years the value will change. It will also likely change in 2 years but it is the owner/investor that assumes that risk. You are right, the value may increase (as it had for you). On the other hand, the value may decrease (as it also has for you).
Do not expect the buyer to pay you in advance for the potential gain. Are you willing to pay more for Coca Cola stock than the current market value because the seller believes you will make a lot of money?
Consider every offer with deliberate consideration. Weigh it out. You are not selling your home full of memories, sweat and love. The buyer is purchasing an investment without the sentiment. The sentiment and warmth is a treasure that your home provided. You take that warmth with you for the rest of your life.
