another article buyers will like

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Hi-Fi55
12 years...wow....

Member since 2/06

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Dianne

Re: another article buyers will like

Posted by SweetestOfPeas

Posted by Hi-Fi55

Posted by SweetestOfPeas

Posted by Hi-Fi55

The value of a home is what it is actually is worth. (Yes I know most appraisers can fudge the figures if they wanted to), but an appraisal report determines the value of your home. IMO

so if your house got appraised for $500K (for example) and you put it on the market for that much, and then the highest offer you get is $420K, is it still worth $500K?

for a HELOC or insurance purpose, it would be still worth $500K, but the buyer determines the market.

Technically, if it was a seller's market you would be able to get that 500k. But right now, it's a buyer's market so that is why you aren't getting full value. That's why people are see that flux with pricing. When they list with brokers and brokers get the comps, sellers list high. Why not, prices for homes have been high for years. But right now we are sitting in a buyers market, no longer a seller's market, so the prices of homes are going down. Eventually you will see the value. But slightly.

but you said "an appraisal report determines the value of your home."

even in a sellers market, the buyer would still determine the value. remember bidding wars? houses were selling for above asking price, because the buyers felt the houses were worth more.

Right, I think with a bidding war in a seller's market, since seller's have an upperhand, the buyers do have to raise their prices. Sometimes yes it is going to be over the value of the home. But does it make it more than what it is worth? Eventually. But that is because it is part of a process. Appraisals put together comps and those comps will determine the value. It tells you what your house is worth. Yes it is based upon other buyers and sellers, I agree, but not based upon the sale or purchase of your home, but based upon the sale and/or purchase similar to yours. I completely see what you are saying though. I just think that there are two ways at the "value" of your home.

Posted 6/29/06 7:23 PM