The longer I am in the real estate profession, the more I am realizing that the biggest factor in real estate is not the financial side, but the emotional side. Buyers pay more for a property than they should because they "fall in love with it." Or the Buyer because of something deep within themselves that makes them feel that they just cannot pay what the seller wants for the property, even when shown that the property is properly priced. They just need "the great deal."

Then you have the sellers that just know their property is worth a certain amount. They think their price is justified because they spent a certain dollar amount on a remodel. Or they did the remodel themselves and know how much time and effort went into the improvement. Or they have received compliments on their home through the years, so it just has to be better than everyone else's. Or they are in no particular hurry to sell so they will just "wait for the perfect buyer that can appreciate their home like they do."

As you can see the reasons for the price of a property are far more complex than just what the numbers tell. Buyers have asked me "Is this a fair price for this home?" If the seller has looked at comparable sales without emotions and gone over those comparables with a competent real estate professional, then the answer can be yes. But if the seller came up with the price because of what they owe on the property, plus a certain amount of profit that they feel they must make, because they have plans for the money, then maybe no.

The only way to truly know if a property is priced right is to look carefully at similar properties that have recently sold. Even then it could be hit or miss. A buyer could have overpaid because the house was just perfect for their needs. Or a seller could have accepted less than the home was worth because of a personal situation. So even the recently sold properties could have extenuating circumstances.

What is a buyer or seller to do? Find a real estate professional that they trust and then listen carefully to the information given by that professional. Over a period of time a good professional agent will have learned to spot the extra emotion in a transaction and guide the buyer to not pay too much, or to guide the seller in not overpricing the property so it can sell in a reasonable amount of time.

The purchase of a home is normally the single largest financial transaction that people make in their lives. You owe it to yourself to make the wisest decision possible. That decision has to be made on the numbers available, and tempered with the possible emotions that could be present on either side of the table. Every seller wants to get as much as possible for their property, and every buyer wants to get the best house for their money, with the right real estate agent, in most transactions that can be accomplished to the satisfaction of all parties.