Many of the homes at Lake Anna are owned by people living in other areas. It is very possible that the market is hotter in some of these areas which can give the owners a scewed idea of the value of their lake property. Thinking that our market is getting multiple offers within days or even hours of a house being put in the multiple listing system gives a false impression. I know that multiple offers are happening in locations not far from here where many Lake Anna second home owners live.
But it is not happening here and that is why I thought it helpful to share this post.
Why Do Homeowners Over Value Their Homes
I would have to answer that question this way. Mostly because Brokers and news sources all broadcast that home values are close to the all time high. Who can blame homeowners, no one has said that lots of homes in specific locations went up in value but that it does not apply everywhere or specifically to their particular home.
What was left out of all the broadcasting and blogs is that real estate is very local and each area has it's own pricing history and values based on that particular neighborhood.
Even the National, State and Local Associations make the same broader statements about the communities, states general or median values. I think this concept has confused many homeowners and caused them to over value their own homes based on what they read.
An example that comes up a lot is the many neighborhoods and communities that make up the City of San Diego is often from the local news articles. The articles often articulate the median and many use the word average home value. Well, if you are homeowner and have an above average home, you might conclude that it is worth more than the average home value quoted. The reality is these numbers have no specific connection to any one home or more specifically to your home.
So if all this information touted out there is not relevant, why is their so much of it out there about values. The specific home value is unique to where it is located ( what neighborhood), lot size, view or no view, what model or styling and how has the home be ungraded beyond the average or standard construction. Certainly the age and condition also have a great deal of influence on both it's value and marketability.
Who can blame the homeowners when all the same "blah blah blah" is repeated so often in the press and on line. It seems that very little clarifying of the relevance of the terms, median and average and certainly no specific information is forthcoming that defies the homeowner's assumption of value. When did you last read anything that says, "consult a local real estate specialist in your neighborhood when you want or need specific value information on your property".
The problem really isn't what is out there as far as information is concerned, it is more specially that the usual information or at least good information that can be relied on, is NOT so plentiful.