Aug. 9, 2008 - Homeowners in denial

Zillow finds homeowners' confidence is unrealistic

This should come as no surprise to most other New Jersey real estate professionals.  Getting sellers to price homes correctly from the start is a huge hurdle to overcome.

Earlier this week, Zillow Blog  stated that 72% of homeowners believed their home value increased or remained the same the second quarter of 2008, according to a recent Zillow survey.

The report goes on to say, "Zillow.com, an online real estate community based in Seattle, said the reality is that 77% of U.S. homes had declined in value over the previous year. "Our survey reveals a wide gap between the perception homeowners have about their own home's value and the realities of a market in which three-quarters of homes declined in value in the past year," said Stan Humphries, vice president of data and analytics at Zillow.com. "We attribute this gap to a combination of inattention and a fair bit of denial that causes people to believe their home is insulated from the woes of the market that affect others, but not them." The survey was conducted by Harris Interactive. "

The reality of current market value can be obtained by a Competitive Market Analysis (CMA) available from real estate agent or through a professional appraisal of your home. Here in Franklin Township, depending on your location and home specifics, a CMA might encompass a period greater than 3-month for recent comparative sales.

Zillow can be found online at http://www.zillow.com.