First of all, this is a question which your real estate agent should have explained to you before you listed your house. However, the economy has been the driving force in lowering house values.
With high numbers of foreclosures and short sales, distress sales have been a detriment to
sellers when their real estate agents research the market on homes that have sold within the
past 6 months or longer. Appraisers have found it difficult to justify certain prices due to the
lack of good comparable properties.
Most sales end up being below tax assessed value or right around the tax value. This is a
rude awakening to many homeowners who wish to sell their homes. The homes which sold in foreclosure have caused the sales prices to nose dive in certain neighborhoods and resulting in forcing sellers to take a hit when deciding on a list price.