Teressa, sellers will always tend to price their property at the highest price that they believe the market will pay. Certainly, if they are represented by a Realtor, it is much more likely that they are educated about local market trends and will price the property accordingly. If you do not have a Realtor to represent you, then you put yourself at a disadvantage. (To a large degree, by asking this question, you have evidenced that you are not represented by a Realtor.)
As my colleagues have suggested, the tax appraisal is not the best indicator of current market value, assuming that is the "recent appraisal" you are referring to. Also, the current tax value may not reflect the possibility that the property has been expanded and/or completely remodeled after being purchased by the current owner as a foreclosure....especially, if the property is owned by Ka-ching, Ka-ching. (When this property was only 940 sf it sold for $92,000. The garage has been coverted to now reflect more area.)
If the property is listed for $125,000 and does not sell, then is could be a result of it being over priced. Without a Realtor, you will likely not be able to effectively keep track of the "current" status of the property. Moreover, with a Realtor, you could prepare an offer based on an educated and supportable opinion of market value and have the opportunity to negotiate effectively, to the extent that you can afford it.
Oh by the way, being represented by a Realtor DOESN'T COST YOU ANYTHING. So, obviously, find one of the qualified Realtors here on Trulia and ask for assistance. After all, that is why we are here. :-)
Best of luck!!
Brent Rice, Trulia Top Recommended Broker (Pro & VIP)
The Rice Group, Inc.
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