The Realty Geek's Blog

Perception of Value

This blog post is a good reminder that home values are be based on hard facts as well as emotional factors, depending on whether it is the homeowner, homebuyer or appraiser who is assessing value. If you're buying or selling a house, keep these points in mind as you consider home values and prices.


Perception of Value

Perception of Value differs for everyone.  What I perceive as value might not be on your top ten list.  So let's see what perception of value means in three different ways:

A seller values his or her home higher because of the emotional attachment they have for it.  The "sweat equity" they put into the home painting, changing hardware, laying new flooring  or planting those lovely planting rosesroses should bring more money when they sell the home.  Most of the time it doesn't - it just makes the home easier to sell in a shorter period of time.  So the perception of value the seller sees may not be realistic.

When a buyer views a home, the perception of value is in the condition, size and location.  That purple room the seller's daughter loves does nothing for the buyer .... in fact the value is very low because the buyer knows that room must be painted.  The seller loves the eclectic neighbors but the buyer sees the value of the home as being lower because of those tire flower pots, odd rusting "yard art" and bowling balls lining the flower beds.

Then we have the appraiser who will use hard facts to set value.  Yes, condition, size and location will play a part in value with the appraiser.  If no sold comparables are available then no matter what value the seller feels his/her home is worth, the appraiser isn't going to be swayed.

And there's one more value in Texas that both buyer and seller must be aware of ..... the appraisal district's value that is used to set the amount of taxes one has to pay each year as PROPERTY TAX.  This value can be protested.  As an owner you wish to keep your tax appraisal low to control the PROPERTY TAX.   This value has NOTHING TO DO WITH THE VALUE of the home on the open market.

So just remember "Value is in the eye of the beholder!!"eyeballs with dollar signs


Home and Hearth Realty, Inc.



Gwynn Teal Carpenter ... the Realtor with an Austin Attitude - laid back with professional results!

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Comment balloon 2 commentsEric Proulx • January 20 2012 05:31PM


Appraising is like art, but when it comes to value it does come down to perception and who's perception ultimately matters.....

Posted by Larry Bettag, Vice-President of National Production (Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001) almost 7 years ago

Eric:  Thanks for the's hard to get across to a seller sometimes that his value is just that HIS VALUE.

Posted by Gwynn Carpenter, : Broker, Home & Hearth Realty (512)467-6191 (Gwynn Teal Carpenter-Broker: Home and Hearth Realty (Austin)) almost 7 years ago