I was watching an episode of the Antiques Roadshow this past weekend and I saw numerous lessons on valuation that could be applied to selling a home.
Just as we found in an episode of Pawn Stars (about a purple trike), we can apply principles from other industries to what is needed in real estate.
So many homeowners are confused about real estate valuation that I bet watching a handful of antiques roadshow appraisals would enlighten them on how to do the same for their home.
The Antiques Roadshow Appraisal Process
When I was watching the Antiques Roadshow this past week, a woman brought in a piece of artwork from 1920. The appraiser explained that it was a lovely painting by a well know regional artist from a hundred years ago.
Her other works have sold from $25,000 to $200,000 recently, with the highest going to the largest piece in pristine condition. The lowest priced sale was for a small print in horrible condition, but her name still carried enough weight for it to sell for a good bit of money.
When it was time for the Antiques Roadshow appraisal, he explained:
If I were to sell your property at auction in today's market, it would likely bring a value of $80,000 to $100,000. But I would appraise it for $150,000 for insurance reasons.
So what exactly can a home seller learn from this brief lesson?
3 Home Selling Tips From The Antiques Roadshow
There are three important tips we can glean from the Antiques Roadshow discourse above:
- Real estate is like an auction - The appraiser indicates for artwork (as for real estate), he would want to get many people interested in the home. This is the job of your real estate company ... to drive interested parties to your home (which is why you need a real estate company with the best real estate internet marketing plan).
- There is a range of values for a home - A home is not worth "$X." It has a range of values, and the more people competing for the home, the better chance you will have to reach the top end of that range when you go to sell it.
- An appraisal value is not necessarily a value that the market will bear - On the show, he gives an appraisal for "insurance purposes." He knows that if the painting were damaged, you might have to pay more money to replace it than the market would be willing to pay to buy it from you. In other words, you might be the very highest bidder for your own home, so you should insure it for replacement value.
I hope these three home selling tips provided by the Antiques Roadshow help you better understand the process of determining value.
Of course, you can skip the Antiques Roadshow and simply drop me a note to schedule a time to discuss the value of your home and how we will get it sold for top dollar in today's real estate market.