A seller called me once and wanting to unload his house in a hurry.
He wanted to sell his house fast, but was only willing to cut the price about 10% off the appraisal.
However, several things stood in his way.
- The appraisal was over inflated.
- For the same price, one could find a better neighborhood.
- The appraisal compared houses with AC to this one which didn’t have AC.
The only way to sell this house fast is to cut the price to level that would get a sale.Â Even at that price, there are still better neighborhoods in the school district.
Notice this take on housing prices
Source: Homeowners Delusional On Values – More Dangerous Than Banking Crisis? (link broken)
Rob Blake reports on a Zillow survey showing in fast relief just how out of touch the average home owner is when it comes to evaluating their own home’s value.Â He takes a spin wondering if that will lead to a real estate freeze, not because of lending requirements, but because no one wants to pay an inflated price.
Zillowâ€™s survey says that half of home owners think their homes are worth the same as they were a year ago. 32 percent believe their home went up in value and 17 percent feel their home decreased in value.
Compare this to the reality that about 75% of all homes lost value since last yearâ€¦we see just how delusional home owners really are.