Why Is The Homeowner Price Perception Gap Narrowing?

One of my first blogs on this website explored the whole issue of how some sellers can become very misled by generic online home search websites. Click here if you missed it, but the gist of the article was that the pricing on these sites is often wildly inaccurate, sometimes leaving agents with an uphill struggle to convince the seller that the actual current market price is somewhat different than he/she thought it was.

I was therefore intrigued to read an article on housingwire.com earlier this week that quoted the recent Quicken Loans Home Price Perception Index that demonstrated the recent continuance of a narrowing gap between what the homeowner's perceived price is and the actual appraisal value.

Although, and perhaps naturally enough, homeowners still imagine their property to be, on average, 1.15% higher than appraisal, this was the fourth consecutive month of price expectations growing closer to actual appraised value.

It's interesting to consider why this general trend is occurring.

As I've been reporting to you recently, we have certainly seen a market normalization and correction occurring from the dizzy heights of 2015, even though this year has still performed excellently in the vast majority of market sectors with even more sales. A natural side-effect here is that prices have broadly stabilized and, thus, we are not seeing the fluctuations that were happening when a large number of offers were often chasing a single property.

While multiple offers are still a factor, they're not at the same incredible scale as we saw a while ago, when inventory was very, very low. Therefore I think it's fair to say that there's maybe a greater sense of realism about what homes are actually worth.

It's our job as highly professional agents to show you exactly why your house should be priced at whatever the level happens to be. This takes into account our extensive local knowledge and vast experience (over 1200 homes sold), day-to-day monitoring of the market and a sense of where it's headed plus, of course, looking at recent sales of similar properties to know exactly where the realistic asking price sits at any given moment.

The worst thing that can happen in this situation, and I'm sad to say it often does, is that the unscrupulous agent carelessly takes the listing at the seller's perceived price, just to secure the listing, with a result that the home stays on the market for longer and sometimes falls below what the optimum achieved sales price should be by a consistent process of chipping away at the asking price until it, eventually hits, or even goes below, market value and a buyer finally makes an offer.

At The Nicoli Group, we adopt a very different, and vastly more effective, proven philosophy that focuses on getting you the most money from the deal, from the get go. We arrive at a price, precisely attuned to the market to attract the greatest interest and, hopefully, multiple offers down the road, optimizing your return through a competitive buying process, boosted by our proactive marketing plan to reach the highest possible number of potential buyers. 

Why not talk to us today about how we can sell your home for the very best return in the shortest time.

Dominic Nicoli