Special offer

Why Home Sellers Struggle to Understand Market Value

By
Real Estate Agent with Elizabeth Anne Weintraub, Broker DRE #00697006

Every so often I talk with a seller in Sacramento who has a very clear idea of how much her home is worth, its market value, but not very often. Most of the time, these homeowners have heard pie-in-the-sky numbers tossed at them from other agents. Or, maybe they remember when their neighbor's house went up for sale a year ago, and that number stuck in their head -- which wasn't anywhere close to what the home actually sold for. Or, maybe they had an appraiser hired by their bank do an appraisal in order to refinance, and they remember that appraised value from last summer.

I don't know why the refinance appraisals tend to come in higher than the actual market value of homes, but that's often been my experience. The problem is only one kind of market value counts. Read more in my personal blog today on my business website about What is the Fair Market Value of Homes?

Posted by

elizabeth weintraub

 

 

Weintraub and Wallace Realtors

 

 

Elizabeth Weintraub reviews

 

 

 

Elizabeth Weintraub is co-partner of Weintraub & Wallace Team of Top Producing Realtors, an author, home buying expert at The Balance, a Land Park resident, and a veteran real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown, Carmichael and East Sacramento, as well as tract homes in Elk Grove, Natomas, Roseville and Lincoln. Call Elizabeth Weintraub at 916.233.6759. Put our combined 80 years of real estate experience to work for you. Broker-Associate at RE/MAX Gold. DRE License # 00697006.

Photo: Unless otherwise noted in this blog, the photo is copyrighted by Big Stock Photo and used with permission.The views expressed herein are Weintraub's personal views and do not reflect the views of RE/MAX Gold. Disclaimer: If this post contains a listing, information is deemed reliable as of the date it was written. After that date, the listing may be sold, listed by another brokerage, canceled, pending or taken temporarily off the market, and the price could change without notice; it could blow up, explode or vanish. To find out the present status of any listing, please go to elizabethweintraub.com.

Comments(4)

Mike Gamache
Fleetfoot Marketing - Wichita, KS
Video Lead Generation from Fleetfoot Marketing

I think that one of the most important things to do in any business relationship is to set realistic expecations up-front and express any detractors or downfalls at that time.

Explaining how a CMA is performed and how the formulae for pricing works is one of the best things I have watched successful Realtors do.

We all would like more business and more listings, sugar coating the inevitable pricing conversation/debate, or over pricing a property in order to get another listing could cost more business in the long run.

I personally would rather have 20 sellers that are completely satisfied than 100 sellers that have a mediocre opinion of my brand and business.

Nov 30, 2013 02:07 AM
Nancy Conner
Olympia, WA
Olympia/Thurston County WA
Many sellers really do struggle to understand market value. And those "helpful" neighbors who tell them fairy tales about their imaginary sales prices can be one of the worst obstacles.
Nov 30, 2013 07:02 AM
Chris Ann Cleland
Long and Foster Real Estate - Gainesville, VA
Associate Broker, Bristow, VA

I took a listing a few weeks ago and at the time, we determined a list price based on market comps.  We took another look today, because it goes active tomorrow and low and behold, the numbers have moved.  Imagine that.  So with a price adjustment and some kick butt staging and photos, we'll be hitting the market ready to sell.

Nov 30, 2013 08:22 AM
James Dray
Fathom Realty - Bentonville, AR

Morning Elizabeth I now have two listings that are not getting any attention.  One I think they will listen the other one is hopeless. 

Nov 30, 2013 10:21 PM