As we’ve seen values soften over the last 6 months with slightly higher interest rates, I’ve had multiple conversations with sellers fixated on a price for their home based on an appraisal they had a few months ago. In my tenure, I have seen this fixation on the appraised value cost the seller thousands as homes around them sell at market value and they hold onto an appraisal opinion that, although thorough, doesn’t reflect the current market value. In an appreciating market, sellers seem to quickly grasp the concept that the value six months prior doesn’t reflect the present value, however in a flat or softening market this same concept seems to an appraisal, in the context of a home purchase, is an opinion of value typically required and ordered by the lender.
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