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?
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