Study affirms that Sellers tend to overvalue their homes
It probably won't come as a shock, but a recent survey by HomeGain reports that 76% of home sellers believe their home is worth more than their real estate agent recommended. This comes despite other surveys which indicate that consumers expect home prices will be flat or down in the next 12 months.
While sellers believe their homes are under priced, 68% of home buyers believe that homes are over priced - and 32% said homes are overpriced by at least 10%. Perhaps some of this discrepancy is based on the availability of 'questionable' pricing data from online sources such as Zillow.
“Homeowners and real estate professionals appear to be in sync regarding the direction of home prices. Home buyers and sellers, however, continue to remain apart as to home valuations with the vast majority of homeowners thinking their homes are worth more than their agents and the market are telling them,” said Louis Cammarosano, General Manager of HomeGain.
HomeGain's 4th Quarter 2011 Home Value Survey included responses from Over 400 real estate agents and brokers and over 2,000 homeowners.
Locally, we've seen most prices rise slightly after being stable for the past year or so. Stapleton homes priced below $400,000 have been selling well, while those above $500,000 have been slow to sell. We've seen an increasing number of sellers 'boycott' the market, declining to sell until they believe that prices are higher. This has led to a lack of overall inventory... and the laws of supply and demand have begun to benefit patient sellers.