These sellers blame real estate people if market data suggests a value lower than that inflated by the owner's expectations or needs. These are the same homeowners who are surprised when buyers look but do not buy, put in what owner considers low-ball offers and eventually stop coming to see the property. Value is not absolute. It is based on availability, usefulness, need and desirability. Where there are relatively few buyers and many comparable homes from which to choose, individual property values may be lower then sellers imagine.
Homeowners often confuse cost with value.
Buyers look for value, which in turn relates to their costs of buying, borrowing the financing and modifying the home to their needs. Canada Mortgage and Housing Corporation , our federal housing agency, and other housing researchers have compiled data galore to prove how savvy Canadian buyers have become too savvy to pay more for a property when they can get comparable real estate for less. Think of the relationship between property value and the number of buyers in a specific market as a triangle. Waiting for this buyer, particularly if the property has few truly unique features, may take forever. Usually, buyers who have the money to spend considerably more than market value will chose to move up to a more prestigious neighbourhood instead.