I frequently hear the comment from buyers "why is this home priced so high compared to the appraisal?"

Unfortunately, the "appraisal" they are talking about is from the tax appraisal district.  This is the value the district placed on the home to assess property taxes.  This amount is usually lower - sometimes significantly - from the actual value of the home.

If a homeowner has done their homework and has been diligent, they may have protested their property taxes over the years keeping the value from going out of control. This is a good thing for prospective buyers because this is the value YOU will be paying property taxes on until the home values in the area are reassessed.

A homes actual value is determined by many factors including neighborhood, size, updates, condition and comparable recent sales in the subdivision or surrounding neighborhood.  A Realtor can assist buyers in determining the value of a home by running a "comparative market analysis" (CMA) providing a high, low and mid range of pricing for a particular home.  This is a guideline - I have seen homes sell for more than I thought they would appraise for (by an professional appraiser) and others come in lower than I anticipated.  It is not an exact science, but it is a helpful guide.

I think the issue comes with today's tech savvy buyers who know how to access all types of information for themselves. As with all information it has to be taken into context and subject to accurate interpretation that a professional Realtor can assist you with.  As a buyer having a Realtor assist you costs you nothing. They will help you make reasonable offers to get you into a home. The seller knows the value of their home - buyers should too.