Majority of Homeowners Believe Their Homes are Undervalued

The number of sellers who believe their homes are being undervalued has increased over the last 12 months, as 76% of American homeowners now believe that their homes should be valued at more than what their listing agent recommends - a rise of 3% from last year, according to a survey carried out by HomeGain.

The survey, which interviewed both homeowners and real estate professionals, also revealed that 68% of home buyers feel that properties are being over-valued, with 32% of these saying that home prices are 10% more than what they feel is realistic.

The findings, which were revealed by RIS Media, show that the gap between agent’s recommendations and what sellers expect has grown over the last 12 months, in spite of a 4% to 7% decline in median home prices. A survey carried out just over a year ago showed that 73% of homeowners disagreed with their agent’s valuations of their homes, while 69% of buyers said houses were being overpriced.

Louis Cammarosano of HomeGain told RIS Media that while agents and homeowners appear to be on the same page as far as the direction of property prices is going, they are often a long way apart when it comes to current property valuations. He said that the findings show the vast majority of homeowners believe their homes should be valued higher than what market conditions are saying.

More than 2,000 homeowners and 400 real estate agents were questioned in the HomeGain fourth quarter survey.