1)  The Amount of Mortgage and Closing Costs: If the owner purchased with little or nothing down or refinanced during a peak market, a market shift can create an upside down situation. The market price probably won't be enough to cover the mortgage payout and closing costs. 

2)  The Money Spent on Upgrades: A seller may want to recoup the cost of an upgrade or renovation and although they can contribute to valule, they tend to bring only a percentage of return, depending on the upgrade.  Some upgrades may be necessary replacements as some will revive an older home and others may be strictly for personal enjoyment.

3) How Much The Owner Paid for the Home:  When demand weakens, the most vulnernable is the homeowner who needs to sell after a short ownership.  A rule of thumb for weathering the market is to own the home for at least 5 years.

4)  The Amount Needed to buy Another Home: Be really careful not to fall into the trap by "We need to get this much to buy the house we want"

5)  The Amount Needed to Pay Off Debts: The seller's price is based on the pretzel logic that a buyer will pay more than market value in order to pay the seller's debts and that amount is more than market value.

6)  The Owner's Emotional Attachment:  Sellers places the value because of a natural tendency to base the value of the home on feelings rather than facts and evidence.

7)  The Home's Assessed Value: This is the method used by the government to determine value for tax purposes.  Assessors do not inspect every property, but only a broad sample of properties.

8)  The Home's Replacement Value: This refers to the full cost of replacing a property with no depreciation.  This has little to do with market value, which is, what a willing buyer is willing to pay in an open, competetive market, within  a reasonable period of time.

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