Who determines the value of your home on a given day?
a. Appraiser?
b. Real estate agent?
c. Zillow?
The answer is (d.) none of the above.
The value of a home on a given day is and has always been determined by the market. Just like any other good or service.
The real estate market has changed so much in such a short time that recent history is all that matters. The market (i.e. recent sales of homes that are similar to yours) is what determines the value.
Actually, it’s really not. What the buyer looking for a home like yours is willing to pay for it today is what will ultimately determine the value, but that’s a function of what other homes like yours have sold for recently…
In short, the biggest influence on the value of your home is what’s happening in your neighborhood right now.
Jeremy Linder