Are Home Sellers Really in Denial?

According to a recent story published on MSN, many homeowners believe their home has either held its value or gone up in price. Real estate agents in once-hot areas are having a hard time convincing sellers of what their homes are really worth. In my experience as a real estate professional, it is always hard to convince sellers of their home's value. Even during the real estate boom, most home owners priced their home above their neighbors' simply because it was theirs'. It's hard to put a price on something that close to one's perception.

But perhaps this denial is a good thing. Not for home sellers who must sell in this market (competing against foreclosures is pretty devastating to a home's value) but for homeowners. Why do I say that? I think although in this market the denial might be keeping homes from finding a bottom (I'm still not clear on what the writer means by that and how exactly that would work), in the long run stubborn homeowners will help the market recover.

It's said that the bull takes the stairs and the bear jumps out the window. Sorry, but perhaps this time the bull might use the elevator. Bank owned houses are priced at wholesale prices because many of them have deferred maintenance. What's more, the bank can afford to drop prices to rock bottom. Once the bank owned inventory is gone, non distressed houses set the price.

So, homeowners: If you simply don't have to sell, weather out this storm. Stay stubborn. Stay strong. You can thank me later.