First of all, we offer a heartfelt congratulations to this seller for finding a great agent to sell her home. Second, as to the seller's review, it is not necessarily inaccurate. The house is likely to sell at around $660k, or $90k higher than the lowest range of our estimate of $557k, which is admittedly a 15% difference. The short explanation is that this seller did not go through with our full appraisal process which may have brought the price higher. Additionally, a comparable analysis done in early March of 2011 would have pulled from sold data from November of 2010. Appraisals are not valid that far back, and we have definitely seen a change in the market in spring of 2012 vs. fall of 2010 (a year and a half difference). For those inclined to read further, here is the detailed explanation for what happened. Background on Lembu Appraisals: Our appraisals are always presented as pricing estimates based on what potential buyers would see. I.e., if a property a few houses away from the subject property sells for $500k with all the same features, then a potential buyer is not likely to pay more than $500k for the subject property. This type of analysis is called a comparative analysis, which is the standard analysis that banks and licensed appraisers use to determine the value of a home. We purposely stay conservative with our estimates and stick to a technical comparable analysis based on the more traditionally tangible features of a home, such as # of bathrooms, sqft'age, condition and quality of various rooms of the home, parking, a/c, etc. We do not put things such as "extra large garage" or "beautiful landscaping" into the technical part of our report. This is because we do not want to mislead people with a piece of paper that could potentially overvalue a home. But instead we prefer to meet in person to discuss adding or subtracting value due to less tangible features. Additionally, in order to check the comparable analysis, we use a market trend analysis to see how much a property may have appreciated based on market trends and improvements from the last sale. After presenting these two analysis in report format, we always like to sit down with our sellers to see if any special attributes such as extra sunlight, large windows, beautiful yards, etc. could push the price up (or down) on the house. We also do a market review right before selling to see how the market may have changed since the pricing report was initially delivered. We also go through pricing strategy before listing in order to allow the seller to choose the level of risk they would like to take. We have priced places aggressively high in the past but only with the seller making the decision after being presented with all the options and potential consequences. We find that after going through our full pricing process, our sellers (and buyers) generally feel empowered to understand the market and choose from the various pricing strategies that we present. We also encourage people to interview multiple agents to find the agent with the best chemistry and services. The exact wording in the conclusion of our pricing report is: "In the end, pricing your home for sale is a process—going through all the steps above can help you get a sense of perhaps what things may have been missed in the MLS CMA, such as proximity to parks, size of trees on the street, and other things that are difficult to quantify such as the size of your windows and the character of your home. Our pricing philosophy at Lembu is to price close to market value, but we also believe that the market value is best found by working with our clients in a process of discussion and analysis." Timeline of what happened That said, here's what happened in this reviewer's situation. They called us around March 1, 2011, to do an appraisal. This was over a year ago today. We did the report, knowing that that they might not sell for another year. Our final numbers in the report ranged from $572k-$602k. We did not do a final sit down discussion to go over all the extra features of a home that we do not put in our technical appraisal, as recommended in our report conclusion, nor did we have the opportunity to do a last minute analysis at the time of listing to understand any changes in market conditions. This reviewer's property listed with another agency at $670k in February of 2012, and went under contract shortly thereafter. Today is March 13, 2012, and the property is still under contract, not under agreement or sold yet. Given the quick contract, assuming the transaction goes through, it's fair to assume they sold at or close to asking price. Analysis A few thoughts on the discrepancy. First, an appraisal estimate is the estimated SALE price. In this particular neighborhood, it's not uncommon to see people sell at 96-98% of asking price, at least back one or two years ago. Thus even if we had chosen to list this particular house, we would likely have marked it up 2-4%, or at least $12k-$24k. Given the fantastic yard, garage (twice as large as a normal one-car garage), and good condition of the home, we likely would have recommended listing at the high end if not higher end of our estimate of $602k. It's likely that if this seller had listed in March or April of 2011, we would have pushed for a $620k list price, which shows a 6.5% difference from what they will likely sell for. Right now, in spring of 2012, houses are selling at asking price at an unprecedented rate due to low inventory and high demand. Very few people would have predicted getting so many houses at asking price this year. It's difficult to say at this point whether that 6.5% difference would have been captured by market data for this spring, but we would only have known by having been given the opportunity to present up-to-date analysis.