Pricing your home; Objective vs Subjective values

When pricing your home, it's important to understand the difference between objective and subjective values:

Objective Value

Objective value is based on measurable, quantifiable factors that are not influenced by personal opinions or feelings. In real estate, this includes:

  • Location: Proximity to schools, parks, and amenities.

  • Square Footage: The size of the property.

  • Condition: The state of the property, including any renovations or repairs.

  • Comparable Sales: Prices of similar properties recently sold in the area.

  • Market Trends: Current real estate market conditions.

REALTORS use these objective criteria to determine a property's market value, which is the price it would likely sell for in an open and competitive market.

 

Subjective Value

Subjective value, on the other hand, is influenced by personal perspectives, emotions, and individual preferences. For example:

  • Personal Attachment: A homeowner might value their home higher due to sentimental reasons.

  • Unique Features: A buyer might be willing to pay more for a property that has a specific feature they desire, such as a custom kitchen or a beautiful garden.

  • Lifestyle Fit: How well the property aligns with the buyer's lifestyle and needs.

These subjective factors can vary greatly from person to person and do not necessarily impact the market value of the property.

Understanding the distinction between these two types of values can help you make more informed decisions when pricing your home. It can also help you manage expectations and negotiate more effectively with potential buyers.

Catherine Schellenberg