Example:   A spectacular home that is completely remodeled comes on the market. The Seller planned on staying in the home forever and recently spent $200,000 to do an extensive remodel and upgrades to every system.  Now the Sellers plans have changed and they are forced to move. The recent sales in the neighborhood are around $780,000 without these upgrades.  So what is this home worth? They Listed for $790,000 to generate lots of interest and drive the market.

Buyer 1:  feels that they will not be comfortable paying more than the List Price … even though they qualify for far more.  Their mindset is based on List Price … Not Value. They know there are 4 offers on the home but feel it would be crazy to go higher.

Buyer 2: recognizes that they cannot buy a typical $780,000 home in the neighborhood and do the renovations without spending a net $980,000 ($780,000 + $200,000). They decide to offer $800,000 for this home.

Result:  Buyer #1 is still looking for “a deal” and they just missed a fantastic one. Buyer #2 had their offer accepted and got $200,000 worth of improvements for about $10,000. Which of these Buyers made the best choice?