Appraised Value vs Market Value: What a Sellers’ Market Means for Home Prices in Bend, OR

Bend Relo strives to deliver the best home buying or selling experiences for our clients. For people selling their home, we ensure clients get the full value from their home sale through a comprehensive marketing plan that includes beautiful, professional photos and video, plus expert staging and cleaning. Our signature full-service approach makes sure the homes we list are ready for their close-up and worth the investment.

Right now, the 2020 market spike presents the most challenges for prospective home buyers. Demand is high for homes in our extraordinary community. Homes are spending an average of four days on the market, and inventory is limited. These conditions make for an intensely competitive consumer market.

Appraised Value vs Market Value

Appraised value is the dollar amount of a home arrived at based on the specific features and the condition of the home, as well as the comparable value of other homes in the neighborhood. Extremely high demand for homes in the Bend area, plus limited inventory, have caused prices on home sales to increase 20% over the last year. List price currently reflects traditional pricing metrics along with sales prices of neighborhood homes that have sold recently.

Our agents take care to caution our clients in the market for a home about the potential differences between the appraised value of a property versus its market value. Bidding wars over available properties are a tough but typical reality at the moment.

How Does Bend Relo Come Up with a Sales Price Recommendation?

Our team does the research to understand the value of a home based on its unique character and features, in addition to recent selling prices of comparable homes in the neighborhood. In one recent example, after extensive research, we settled on $450, 000 for the asking price of a home. In a matter of days, the homeowners received six competitive offers, all above the asking price we’d set. The winning bid that ended the war was $500,000. This higher sales price is an indicator of a sellers’ market, and also an example of a buyer who was willing to bid higher to ensure their chances of winning the property.
Some people may get the impression that the real estate market is using this moment to take unfair advantage of buyers. We understand how some people may come to believe that current market value reflects artificially inflated pricing. And we get it. For buyers, this can be a frustrating scenario. We are on the front lines with our buying customers when they lose a bidding war, or two, or five. But market price is driven by consumer demand, and, as we firmly believe, not representative of price gouging in the real estate industry.

The Importance of Research, an Excellent Team & Patience

Whether our clients are buying or selling, we are absolutely dedicated to delivering the best possible outcome. Diligent in our research trends in the Bend real estate market, we do our daily best to stay informed and ahead of the latest developments and opportunities for all our clients.

We help clients who are listing a home on the market to present their property well, at a researched and competitive price, so that they will sell at full market value. For our clients who are looking to buy in Bend, we help them navigate the competitive marketplace with all the tools and knowledge at our disposal, and when they find a home they love, we advise them during bidding wars with information on the neighborhood comps, as well as current market activity. Finding the perfect home at the right price for each and every one of our is the work we love to do.

Irene Cooper is a poet, novelist, creative copywriter, and 24-year resident of Bend, Oregon, having lived in cities and small towns from New York to Rio de Janeiro to Markleevile, California. When not blogging, Irene dedicates time and energy to expanding and supporting the Central Oregon writing community.

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