Why are homes being sold for almost 2x their Market Value?

[Bryan Tasumi]

I am looking at har.com (Texas Real Estate website) and there are many homes selling for almost 2x their listed "market value". People can list their home for however much they want correct? How do I know that listing prices are not artificially inflated? For example, if someone has a home worth 300k, can they list it for 500k just to see if anyone will buy? I do this all the time on ebay, Amazon and some people still buy things that are actually worth 2-3 times LESS.

For example, the home 2834 Southmore Blvd, Houston, TX 77004 has a stated Market Value of $188,330 but is listed for sale for $311,000. Is this price way too high? There are homes around it that have market values of $160k or even lower, so wouldn't $311,000 be a rip off? I am not sure how to analyze this...

[Jim Cummings]

Bryan

YES - it's possible to list a property on the MLS at any price desired - and there are Agents that will list it at ANY PRICE! Getting it Sold at the inflated List Price is another question.

My guess is - you are looking at Values derived from "Taxing District" data. Texas is a NON-DISCLOSURE State - meaning when a Property Sells & Closes, the actual SOLD Price is NOT recorded in the legal records of the county or state. 

If the property is Sold through an MLS, the SOLD data is recorded in the MLS Sold Records - available to all members of the MLS. Competent REALTORS will base their estimate of Value (thus asking price) on Comparable Sold Properties.