Last year at the beginning of 2006, I listed a home for $625,000. At the time, I told the seller that the prices were falling and that his price was too high. I showed him a recent sold for $600,000. It was his exact model and was in a little better shape. The seller showed me a recent appraisal for $675,000. I told him that I did not think his home had ever appreciated to that value. An appraisal is just someone's opinion - not something concrete. We agreed that we would review the pricing after a few weeks. After about 25 days, we got what I considered a low ball offer of $550,000. I told him that he should counter between $590,000 and $600,000. He was so upset with the offer that he would not counter. When the listing came up for renewal, I opted out since I knew I was not the right real estate agent for him. I knew I could not sell his home for his price and in its present condition.  He used 2 different realtors and 16 months later, he did not sell. Today, on the MLS, his home came up as a foreclosure at $499,900. Very sad. Real Estate is an investment and it goes up and down just like the stock market.  He had owned the house for 15 years and had taken out a home equity loan based on what the appraiser had told him.