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The Market Does Not Know What You Want to Net
When homeowners begin thinking about selling, one of the first questions is often:
“How much money will I walk away with?”
That is absolutely an important question. Maybe you need the proceeds to purchase your next home. Maybe you're downsizing and want money left over for retirement. Perhaps you need to pay off debt, relocate, or simply have a certain amount in mind that would make selling worthwhile.
There is just one problem:
The real estate market does not know what you want to net.
And it doesn't price your home based on what you need.
Your Needs and Your Home's Market Value Are Two Different Things
Suppose you owe $300,000 on your mortgage and would like to walk away from the sale with another $150,000 after expenses.
It's tempting to start with those numbers and work backward to determine your asking price.
But that's not how buyers determine what they're willing to pay.
Buyers are comparing your property with other homes currently available, homes that recently sold, the condition and location of your property, and what they can afford.
They don't know what you owe.
They don't know what you originally paid.
They don't know how much money you've invested in the property.
And they don't know how much you want left in your bank account after closing.
They only know what your home is worth to them compared with their other choices.
Pricing Based on Your Desired Net Can Backfire
This is where sellers can get themselves into trouble.
Imagine the market indicates that a home is worth approximately $450,000, but the seller wants to net an amount that requires selling for $500,000.
Listing it at $500,000 doesn't suddenly make it a $500,000 home.
Instead, buyers may look at competing properties and decide they can get more house, better condition, a better location, or greater value somewhere else.
The home sits.
Then comes a price reduction.
Then another.
Eventually, the seller may find themselves chasing the market instead of leading it.
That's especially dangerous because buyers notice days on market and price reductions. They may begin wondering what's wrong with the property or conclude that the seller is becoming increasingly motivated.
Price and Net Are Both Important — But They Are Different Conversations
None of this means your desired net doesn't matter.
It matters tremendously.
Before listing your home, I believe we should discuss both sides of the equation.
First, what is the market realistically telling us your property could sell for?
Second, after considering your mortgage payoff, commissions, closing costs, concessions and other expenses, approximately what could you expect to walk away with?
Then you can make an informed decision.
Maybe the numbers work beautifully.
Maybe they don't.
Maybe selling now makes sense, or perhaps waiting is the better decision.
I'd rather have that conversation with you before the FOR SALE sign goes in the yard than make promises the market may not keep.
My Job Isn't to Tell You What You Want to Hear
One of the most important responsibilities I have as a Realtor is giving my clients realistic information.
Sometimes that's exactly what they were hoping to hear.
Sometimes it isn't.
But pricing your property simply to win the listing doesn't do you any favors.
My job is not to tell you the price you want to hear. My job is to study the market, explain what the numbers are telling us, and help you develop a strategy designed to achieve the best possible result.
Your financial goals matter.
Your equity matters.
Your next move matters.
But ultimately, the market determines what buyers are willing to pay.
If you're considering selling your Tucson-area home, let's sit down and look at the numbers before you make any decisions.
There is no obligation and no pressure. Just a straightforward conversation about your property, today's market, and what selling could realistically mean for you.
Wes Stolsek
OMNI Homes International
520-404-9773
Your Goals. My Guidance. A Better Result.
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