Delusion vs Reality - Homeowners just don't want to hear it...

By
Real Estate Appraiser with North Coast Appraisal Service

I did an FHA appraisal inspection this morning, and the owner casually mentioned what she and her husband thought their house should be worth. Of course, I always make a note of what they say, just for my records, and then proceed to explain the current reality of the market.

Funny how while I'm explaining that the market has dropped off about 12% in 2008 vs 2007, I can see the glazed over look in their eyes, and the reaction on the owner's face... you know, the one that says 'Well, that may be what the numbers say and how the overall market's doing, but that doesn't apply to my house.'

Of course not, your house is the exception.

Your house is worth WAY more than everyone else's, even though you still have the original vinyl flooring and formica counters from 1987 in the bathrooms, and the indoor/outdoor carpet in the kitchen and dining room.

No, your house is totally different and better than all the others, so of course it's worth whatever you think it should be worth, because that's what you told the lender, and that's what you need to make your loan work, and besides, you know the market.

I just smile and think to myself wow... some people just don't get it.

Delusion... coming soon to a community near you. 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Location:
Washington Clallam County Sequim
Tags:
appraisal
reality in the market
delusion
market decline
sequim
wa

Spam prevention
Show All Comments
Rainmaker
1,229,630
Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents
Lyon Real Estate - Sacramento, CA
Put 40 years of experience to work for you

And don't you just wish, Marti, that instead of writing a blog about it, you could say those words to the owners in person? :)

Elizabeth Weintraub Land Park Real Estate Agent in Sacramento

Jan 16, 2009 12:40 PM #1
Rainer
97,961
Arthur Buhrer
Arthur Buhrer, Clift Mortgage, Sequimhomeloans.com - Sequim, WA
Senior Loan Officer, Washington State

When will we come back down to realty?  Especially in our area where home values super inflated in a matter of years. I wish there was a special formula to gage the true/ or safe value. Rate of inflation cost to rebuilt, somebody please tell me. I just don't won't to over pay for a home especially if values continue to go down.

 

Feb 06, 2009 12:33 AM #2
Rainmaker
140,859
Ana Hitzel
AccentPositives Home Staging - Corona, CA
Home Stager Inland Empire & Palm Springs

Hi Marti,

Talk about reality check, here in so cal people are learning the hard way.  You can't show your house like in 2004 and get $800K for filth, old broken down and out of date.  After 2 years of this, people still don't get it and many agents don't either as they still will quote a listing price way over value to get the listing and still post awful pictures on the web to advertise them.

Sep 07, 2009 01:39 PM #3
Show All Comments
Rainer
7,917

Marti Winkler

Certified Residential Appraiser
Ask me a question
*
*
*
Spam prevention