Who decides how much a house is worth??
A viewer recently posted a comment on one of my "Real Estate Market Update" videos and this is what I replied:
Viewer's Comment: Hey, here’s an idea… why don’t real estate agents tell investors and sellers to wake up and smell the news brewing in the Los Angeles housing market, rather than allow these incredibly greed-focused people to stop over pricing their properties in an over inflated, high interest (and only going higher) rate market?
Michel' Reply: Thanks for your comment. Unfortunately real estate agents do not control the price sellers want list their properties for. All we can do and what most of us do, is to show homeowners the "comps" (comparative sales) to help them decide on the price. We can guide them, and we can educate them but in the end, the asking price is the homeowner's final decision. And ultimately, homeowners don't decide how much a property is worth or how much it is going to sell for, neither does the real estate agent, neither does the appraiser. Only the buyers do. If if a buyer is willing to pay x$ for a property, then that property is worth x$. If buyers are not willing to pay that price, then the market will let the sellers know by passing on it or making lower than the asking price offers and sellers will have to adjust have to adjust accordingly. That's how supply and demand has worked in ANY industry, around the world and forever.