But they think they do.

You were at the right place at the right time. During an economic downturn, you had cash to purchase a great off-market home at a discount. Now you are selling it when home prices are high. The home has doubled in value, and you’ve done very little in upgrades. Your buyer sees that you are making a killing on the home and expects you to sell at a lower price.

This is a common buyer expectation, and is entirely without merit. If you bought Apple stock in 2004 and decide to sell, do you receive the difference between what you paid in 2004 and what it is worth now? Or, do you receive the difference between what you paid in 2004 and what the average stock price is today? Obviously, your profit, which is far larger than average, is what you get. The same is true in real estate.

How do you explain to your buyer that they do not get to benefit from your wise investment? First, remind your buyer that homes sell at what the market determines is fair. Lenders use appraisers to determine a home’s market value, not to calculate what the seller’s profit will be. A comparable market report will reveal what a fair, market price is.

Second, explain that through a combination of research, planning, and good timing, you were able to invest in a great home at a low price. Just like you would not expect your buyer to pay above market value if you had overpaid for the home, you do not expect the buyer to underpay for a home that is worth what the market experts determine is true value.