You read it right. I was talking to a seller yesterday as he ranted about giving his home away at a discount and I asked him, "Discount? Where is the discount coming from?" He replied that the home appraised last year at a higher price thus making it at least a $10K discount. I asked him if the home would appraise for that now. ... Wait for it.... Then he says, "of course it would! If anything it would appraise for more! Appraisers don't look at the market!"
So the conversation went on like that, but I would shudder to think that evaluation methods whether replacement costs or actual value (cost per square foot) would not take the market into consideration. Sure, I agree, the real estate market is like the stock market, but it's actually pretty darn slow moving and it's ALMOST predictable. Well within statistical percentages that are closer than gallop polls.
As a seller in this market you HAVE to consider the market conditions. These are just some of the conversations I'm having in Lawrenceville, GA.
Joshua, whoo! What dream world is this guy living in?
Fairly typical remark and thinking from a seller. Our job is to educate, educate, educate and hope we can give them comparables that are reliable.