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Homeowners consistently overestimate value of their homes

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Mortgage Professional America | 18 Apr 2016, 06:30 AM Agree 0
The average homeowner’s estimate of his home’s value is about 2.17% above the value according to appraisal, a study finds – and it’s a gap that’s been widening for months
  • Mars | | 18 Apr 2016, 11:32 AM Agree 0
    Homeowners are hearing that the market is increasing, when it is not, in this area. In addition, they equate cost with value. Two very different things. Also, it becomes and "I want" situation, whereby the homeowner is selling based upon a predetermined number that they WANT. Many real estate agents will take any listing at any price, with the feeling that when it doesn't sell, the homeowner will lower the price. On refi's, many borrowers attempt to influence. Many agents do not know what a COMP consists of. One gave me COMPS in 3 competitive neighborhoods. That's fine. However, not one of them were a closed sale. ALL were active listings? How do these people stay in the business? Realtors make statements as though they were facts, when it is their opinion with nothing to back it up. How can you have a contract price of $400,000 when every closed sale within the last 3 months was at $380,000, when the subject is exactly like them, when there are NO closed sales at or above $400,000? It is a huge problem.
  • Cheryl M | | 18 Apr 2016, 12:01 PM Agree 0
    Very Very true, Agents do give a false sense of what a "real" home value is. There are very few agents out there that actually dish it out "as it is" And when a home doesn't sell at that over inflated price homeowners become angry and then more often than fall through. Finally, we have hvc the round robin of a True Appraisal. WOW, then when a homeowner's home doesn't appraise for what that Agent said it would HOLY COW here know what hits the fan then. How about educate not manipulate our homeowners/clients. Seems the mortgage industry is over regulated, maybe some of that should be distributed evenly to Agents on some of these issues.
  • Miller's Daughter | | 18 Apr 2016, 12:55 PM Agree 0
    Commercial is no different, maybe even a little tougher, when "what is a comp" is thrown into the mix. Medical office versus general office, QSR versus general retail, ST credit NNN retail vs. less than credit NNN retail, . . .
  • Sandy F. | | 29 Apr 2016, 08:38 AM Agree 0
    I disagree with what you are saying about Realtors not knowing what a "comp" is. I am a Realtor and I do know the market value of homes being sold in my area. I always show my sellers what has sold in their area. It is up to the seller as to what they list the property for. All I can do is guide them as to what it should list for. I need to listen to my seller as they have the final word. My job as a Realtor is to keep the deal together, not let it fall through. Sellers have an idea of what their property is worth. That is not always the case. And, I always provide them with an Estimated Sellers Net Sheet so they can see what their net, or loss, will be based on the selling price. And yes, I do educate and not manipulate. If my clients are not happy, neither am I.
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