A seller has the choice of what value to list their home for sale. Sometimes sellers may list their property above market value. A good suggestion for buyers is to find out if the asking price is in line with prices of similar homes in the area? Your real estate agent can conduct research, called a "Competitive Market Analysis" or CMA, on comparable properties, to help you come up with an educated opinion on the worth of the property. The market will determine market value and what homes will sell for.
Prudential California Realty
Though, as a homebuyer, you should be doing fine with median sales prices going down.
Make an offer for what the property is worth, not what those greedy sellers are asking. Obviously, others are doing that and succeeding if sales prices are going down.
The Seller may figure that that is what the house is WORTH to him, or
he may figure that that is what some unknowing idiot will pay him.
The common term is; "We can always come down!"
The problem is, if the Buyer is not interest in pursuing it further, the Seller will never have the chance to save the sale.
And then, when the Seller comes to his senses, and tells the Agent to lower the LISTING PRICE;
No only is the critical selling time passed, but the potential Buyers are asking "What's wrong with it?"
The Realtor is frustrated too, because they had a perfectly good opportunity to sell a house, and now, it's gone. His client didn't listen to him!
The VALUE of a home is not determined until a willing and able Buyer puts down the money to buy it!
The Seller's idea of the WORTH of the home, is meaningless!