When a seller decides to list their home for sale as a FSBO, as Real Estate professionals call it, they often fall into the trap of looking at what they paid for the home and then adding the cost of every improvement they have made over the years to arrive at their desired sale price. In a perfect world where nothing devalues over time, that would work However, as an owner they are getting the benefit of the use of the improvement over several years. That said the improvement value declines over time.
Market value for a property is decided at
the moment an offer is accepted. It is that meeting of the minds where a seller
offers for sale and a buyer agrees to buy a property at a price and terms upon which both
parties agree. Thus items the FSBO seller may think is worth a great deal may be something a buyer doesn't care about. The classic example is a swimming pool which is a lifestyle choice for the seller, may be the last thing a buyer wants who has a career that involves lots of travel.