Over the last several years, it has been a very strong Seller's market, and the Sellers are definitely driving the bus! With that being said, when you ask the homeowner what they believe their home is worth, oftentimes they answer with a price WAY over the fair market value!
Maybe they are comparing a home in the neighborhood to theirs, but the one sold had 200-300 square feet more than their home has! This makes a huge difference. Maybe they were on a site that gives "estimates", but is WAY off. Maybe even looking at the assessor's value, can be wrong.
The only way to arrive at a fair market value is to look at the properties that have sold that are a similar style home and square footage. (you shouldn't use a ranch to compare to a tri-level home) If there are none to compare, then an adjustment will need to be made.
Bottom line, when you list at a fair market value, the buyers will most likely bid it up, and this will be THEIR decision. When a homeowner lists too high, the buyer is already on edge. The buyers are more willing to put up an appraisal gap amount if it is THEIR idea. If you list too high, not only will this affect your showing amount, but also the offers you receive (or no offers received).
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