Home Owners Overly Optimistic About Home's Value
December 19, 2012
Seventy-five percent of home owners say they think their home is worth more than the agent’s recommended list price, according to HomeGain’s fourth quarter home values survey.
Meanwhile, 63 percent of home buyers say homes are overpriced.
Thirty-six percent of real estate agents say that their clients believe their home is worth 10 percent to 20 percent more than what the agent recommends, while 33 percent say their clients believe their home is worth 1 to 9 percent more.
Compared to last year, clients’ expectations over their home’s value has seem to get more in line with expectations. In the fourth quarter of 2011, agents said that only 8 percent of their clients believed their home to be worth the listing price their agent recommended; now that percentage is twice as high at 16 percent.
While most home owners may feel their homes are undervalued, most home buyers feel the homes are overvalued. Forty percent of home buyer clients believe home prices are overpriced by less than 10 percent, real estate professionals report. Twenty-two percent believe prices are overpriced by 10 to 20 percent.
When it comes to selling the home, nearly 60 percent of real estate professionals report that the average difference in price between what the home is listed at and what it eventually sells for is less than 5 to 10 percent.
Updated: June 22, 2018