appraisal value is low because of comps

and this really stinks, I posted some pics in my profile but situations change and will probably force me to sell. The appraisal by a realtor is real low, but a private appraisor came in higher. The neighborhood is 40+ years old but has great appeal to most people, kinda out of the way, quiet, no homeowners association, a lake to look at, fish and canoe (not swim in). The homes that have sold had major foundation issues and driveways. Many never remodeled, smaller, and one car garage. My place is one of the nicer ones, but none of those homes have sold around here.

When I price it, do I ask what the realtor, appraisal, or my gut (heart) says I should ask. Kinda like you can take it when you pry it from my cold fingers feeling letting this go like this. So yes, I'm probably overvaluing it.

Realtors are warning me about going high and dropping the price later, but I look at what it would take to fix these other homes and I think I'm being pretty reasonable (no, it's not going to be a bargain).

Suggestions from those that have sold???

While the answer is hard to swallow, it is only logical.

The realtor is the one selling your home so you have to price it based on what they believe they can unload it for.

However, in the end, the financial institution that lends to the buyer will order an appraisal to make sure the home is worth what they are lending.

Your not alone, we all have been dragged down in real estate values due to the economy.

If possible, I would find a renter for the home that can pay enough to cover both any existing mortgage and property tax. This way if you purchase a new home you can prove to your lender that via income both the mortgage and property tax of your existing home is covered via a renter (w/lease). This is the only real solution while you hope for the real estate market to bounce back.

Use the Effros method
and let the realtor go to a place that is hot and is presided over by some guy with horns and a pitchfork.

The realtor can maximize his/her avg. income by not asking for top price on each property.
Their income depends on price asked vs. likelihood of making a sale at that price. As price goes ^ likelihood goes \/. They have to find the max point on that curve and stay there.

Your goal is different.

My wife and I have bought and sold more than 20 houses in the past 40+ years we've been married. I haven't sold a house for the past three years, but I've given purchasing advice to three members of our extended family in 2009 and 2010 on how to buy in today's market.

Basically I tell them to:
1) Get as much data as possible as to what houses have sold for in the area where they would like to buy.

2) Chart the data so they know:
a. If the average actual sales prices are decreasing or increasing. The direction of the actual selling price is important because it will tell you if potential buyers consider the area one that is 'moving up'.
b. If prices are being reduced and what impact that has on the date of sale.
c. How long houses are on the market before they actually sell.

3) Look at everything in the area, but don't fall in love with anything. Always look at a house as something you might have to sell in six months.

4) Bid in the low range of houses that actually have sold and don't make more than a 1% counter offer.

Your post indicates that the homes that have actually sold in your area at the lower prices all have 'issues', but the nicer ones have not sold. That indicates to me that the typical buyer for your area isn't looking for one of the nicer homes and/or doesn't care about the condition.

Try doing the steps I've outlined above as if you were looking to buy in your area and see what you would offer for your house.

Buyers are always looking for what they perceive to be a bargain.
Realtors are always looking to make a sale.
No reason to trust the appraisal of a realtor, they like to work on volume like everyone else with something to sell. A lot of Realtors will cut your throat if they think dollars will come from it.

If your neighbor's properties are diminishing in value due to upkeep you may be screwed when it comes to a new buyer getting a loan based on a lender's appraisal. I would first put my price on the property then hold out for a buyer that recognizes the upside potential (if there is an upside). Why not market and sell the property yourself? There are a million things you can do to target specific potential buyers. You can hire someone to do the paperwork without using a realtor and the cost is a helluva lot less in most cases.

All those Realtors aren't driving all those Escalades and owning their own summer lake-homes because they are being fair and honest with people like you.

I'll add this bit of wisdom, it applies to most buying/selling situations.

"Something is only worth what someone is willing to pay for it."

The appraisers, if they are doing their job, try and determine that through comps. The Realtor is not motivated by getting you the most $$$, they get paid when something sells. The difference in commission on say $10k for them is typically $300. They would rather give up $300 to make a sale versus sit forever trying to market an overpriced house. I would too.