When something is yours, it can be easy to overestimate its value.
Your personal attachment and nostalgia for something can make it seem as though its worth far more than it actually is. This is true whether you’re having a garage sale or you’re selling a house. Therefore, it’s important to try and remain detached and realistic when setting prices for the things you love.
For homeowners, this can be especially difficult. The good news is, according to recent research, homeowners are becoming better at estimating the value of their homes. In fact, the gap between what homeowners believe their home is worth and what it appraises for is now just 0.67 percent – the smallest it’s been since March 2015. Of course, where you are matters.
Some of the difficulty homeowners have in estimating their home’s value is due to the changing nature of the real-estate market. If you’re in an area where home prices have been rising relatively quickly, you may even underestimate its appraised value.