How preceptions effect market value

A pal of mine that is an agent wanted me to help him do a CMA (Comparative Market Analysis) today.  It is one of those houses that an older person has had forever.  It needs the usual paint, carpet, de-landscaping and all.  Other than some settlement on the back of the house, there really isn’t much that is wrong with it.  Yeah, there are a few age related items that will need attention, but it has been maintained well.

 The problem is that when people come in and see 50 years worth of stuff, out of style furniture, and over grown bushes, they don’t emotionally get a vibe for the house.  They can’t imagine themselves living there the way it is now.  Soooooo, you have to attract them with a good deal.  This house will probably sell for something like $35-40,000 less than what similar houses have in the same neighborhood because it needs $10,000 worth of cosmetic updates!

That is how “Market Value” works.

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