Real Estate is unique in that everyone can value a property differently. Here is the order of how people view the value of a home:
Pretend Example of the Order of Valuation:
Homeowners: My home is worth 300k. I've updated the paint, changed light bulbs, and have owned the home for years.
Listing Agent: My client is listing their home at 275k. The highest sold comparables are in this general range.
Appraisser: I am submitting this offer based on my research and trying to justify the contract price so no one gets mad. My value is 269,700k.
Buyers Agent: This home is worth 265k at max. However, my clients want this home and with multiple offers our price is $269,700.
Buyers: I'm going to have to rip out the backsplash and update all the kitchen cabinets. This home is worth 260k. I'll ask my real estate agent what offer I need to make to win this house.
This chart below is great that it shows buyers, sellers, and appraisers are closer in their perception of value.
Chart from: https://magazine.realtor/daily-news/2018/07/12/owners-appraisers-closest-to-agreement-since-2015?tp=i-H43-Bb-2OQ-3tsh4-1p-9Znb-1c-3u51n-2H5d8R&om_rid=57647294&Om_ntype=RMOdaily&om_mid=9202