Why Home Buyers and Sellers Disagree on Home Values

Somewhere between a seller’s favorite backyard memory and a buyer’s spreadsheet of “must-haves,” the same house becomes two very different things. In this episode of Selling Greenville, the host unpacks why the gap exists—how sellers price with their hearts (and history) while buyers shop with the present tense in mind—and what that means for anyone hoping to move a property without losing their mind.

Home Buyers and Sellers Disagree on Home Values

At the heart of the disconnect is perspective. Sellers live in a home’s past and present; buyers are purchasing its next chapter. That single difference shapes what feels “fair,” what seems “overpriced,” and how negotiations unfold once emotions meet numbers.

The seller’s lens: memory, money, and meaning

To explain how sellers arrive at “the number,” the host walks through a simple pie-chart framework based on day-to-day experience (not a national dataset, as he openly notes). Here’s how that mental math usually breaks down:

1) Original purchase price (~50%):

Like gravity, it anchors everything. If someone bought at $300,000, it’s hard to imagine selling for less, no matter what the current market is whispering. That first figure becomes the baseline that the seller builds upon.

2) Perceived appreciation (~20%):

Headlines, a neighbor’s sale, or a quick calculation (“Our floor plan sold for X a few months ago…”) layer onto the baseline. Sometimes a seller even reverse-engineers neighborhood appreciation and—by coincidence—lands near the right price. But it’s not a reliable pricing method on its own.

3) Value of improvements (~15%):

New kitchens, backyard upgrades, bathroom remodels—sellers remember the invoices. The catch? Buyers rarely pay dollar-for-dollar for what those projects cost. And when comparing with neighbors’ homes, sellers tend to over-credit their own upgrades and under-credit others’.

4) Emotional investment (~10%):

Memories matter. First holidays, kids’ milestones, even the spot where the family dog is buried—these pull on price expectations. Emotions can get so strong that some owners would prefer to sell to a buyer they “like,” even for less. The host cautions, "That’s a legal minefield." Fair housing applies; choosing buyers based on subjective traits can cross lines. Emotions need boundaries.

5) Intangibles (~5%):

Quiet streets, “great neighbors,” the vibe of the block—sellers feel these qualities deeply. They’re real. They’re also hard to market and easy to misinterpret. What’s a plus for one person (chatty block parties) is a minus for another (please, no block parties).

A key seller pitfall: becoming the highest bidder on your own home

When the sum of baseline, appreciation, upgrades, emotion, and intangibles outruns actual demand, a listing stalls. The host sees it often: the home is worth most to the owner—and only to the owner. Pricing to that personal peak means pricing out the market.

The buyer’s lens: the “now,” the comps, and the life upgrade

Buyers, on the other hand, value in the present tense. Their mental pie chart looks different:

1) Price vs. other active listings (~40%):

The first stop isn’t yesterday’s sales—it’s today’s competition. How does this house stack up against what’s available right now? That’s the comparison shoppers make before anything else.

2) Price vs. recent comps (~30%):

Only after scanning the actives do buyers zoom out to closed sales. Here, the skepticism flips: instead of sellers critiquing neighbors to justify a higher price, buyers critique the subject property to argue for a lower one (“That comp had a larger lot, a cul-de-sac, a newer primary bath…”).

3) Lifestyle improvement (the decisive middle slice):

Call it the life math: Will the monthly cost meaningfully improve how they live? Shorter commute. Better school fit. A yard for kids and pets. A neighborhood that feels right. If the lifestyle upgrade isn’t there—or the price for that upgrade feels too steep—buyers walk, even if the house is “nice” and “priced okay.”

4) Value of seller’s improvements (~8%):

Updates impress, but they’re expected. If the finishes don’t match a buyer’s taste or function (hello, gorgeous single-vanity bath where a double is needed), the “value” evaporates. In this market, updates keep you in the conversation; they rarely win it alone.

5) Intangibles (~2%):

These usually work against a sale because buyers assume the worst. Your “friendly, protective neighborhood dogs” might read as “constant barking and safety worry” to a stranger pulling up for the first time. Intangibles are rarely deal-makers—and can easily be deal-breakers.

Two mindsets, one negotiation

Because the lenses differ, energy in negotiations matters. The host mirrors his clients’ style—hard-line when they want force, conversational when they want collaboration—while keeping strategy within what serves their interests. Even then, deals derail when either side forgets there’s a human across the table. Sellers who price only for themselves stall. Buyers who ignore the seller’s reality miss opportunities.

A few practical takeaways from the episode

For sellers

• Price for the market you’re in, not the one in your memory. Today’s active competition sets the stage.

• Don’t over-credit your upgrades. They help—but only when aligned with broad taste and function.

• Guard your emotions. Fond memories shouldn’t turn into fair housing problems—or an unmarketable price.

• Avoid becoming your home’s highest bidder. If no one else will “pay what it’s worth,” it isn’t worth that—today.

For buyers

• Start with the actives. If a home is clearly the strongest in its current lane, you’ll feel it—and so will other buyers.

• Use comps to calibrate, not to wish. Closed sales anchor value, but the market moves—and your lifestyle needs rule.

• Expect updates, but verify the function. Pretty doesn’t replace practical.

• Keep intangibles in perspective. Visit at different times, walk the block, and test assumptions before you decide.

A note on ethics (and why it matters to your wallet)

In a brief aside, the host flags two realities that shape clean deals:

• No kickbacks. Referrals aren’t paid side doors; they’re not allowed.

• Fair housing stands. Letting emotions steer seller choice toward a “preferred” buyer can cross legal lines. A clean process keeps focus where it belongs: the home, the market, and a fair agreement.

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Bottom Line

When sellers price from memory and buyers shop from the present, “fair value” splits in two. Sellers start with what they paid, what they added, and what they feel; buyers start with what’s available now, what sold recently, and how a move will improve life. Deals come together when both sides bridge that gap: sellers step out of their own echo chamber, buyers anchor expectations to today’s choices, and everyone negotiates with clarity instead of wishful thinking

Ien Araneta

Journal & Podcast Editor | Selling Greenville