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Old 06-07-2009, 11:43 PM
 
15 posts, read 39,014 times
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Quote:
Originally Posted by nsumner View Post
Some sellers list their homes below what they paid because they choose to not because the market demands it. I think it's because of bad advice or thinking that the house will sell faster.

Both homes are under contract and were both under 3 months on the market.

The average day on the market in Timarron is 97 and homes are selling for 98% of sale price. You will always find that one where the owner overpaid to begin with or didn't take care of the home etc. that is why they feel that they have to offer an agent bonus or buyer money to update/fix the home.

Same with Southlake Woods, both sales from this year sold in less than 30 days.

Naima
The problem is, it's not just these two houses. In fact, you'll find that most of the current sellers in Southlake who bought in 2006 or 2007 will end up losing money. You can't just claim they "overpaid" in the past because if most people overpaid, it's not called "overpaid" anymore. The only explanation is that the market is going DOWN.
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Old 06-07-2009, 11:55 PM
 
15 posts, read 39,014 times
Reputation: 15
Quote:
Originally Posted by nsumner View Post
Some sellers list their homes below what they paid because they choose to not because the market demands it. I think it's because of bad advice or thinking that the house will sell faster.

Both homes are under contract and were both under 3 months on the market.

The average day on the market in Timarron is 97 and homes are selling for 98% of sale price. You will always find that one where the owner overpaid to begin with or didn't take care of the home etc. that is why they feel that they have to offer an agent bonus or buyer money to update/fix the home.

Same with Southlake Woods, both sales from this year sold in less than 30 days.

Naima
You meant asking price?
And how is this any indication of market trend?
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Old 06-08-2009, 08:02 PM
 
27,485 posts, read 44,973,761 times
Reputation: 14056
I think she did mean the contract price is 98% of listed price...and that YOU don't understand that there is a floor to this market--that people are not panicking about selling and giving their homes away...but that some people who might have unique circumstances MAY have their homes on the market at less that what the comps for neighborhood are--and those houses may have specific, unique reason for doing so...
but that it takes time to sell a house--and people should be aware of the avg DOM for listings and understand that is an average...two homes listed 9 mo apart--both finally get contracts after the second one is on the market for a week--the average DOM will be HALF of their total days--does not represent the truth of either situation...

most things are relative--and if no one is interested in selling a house, then the selling price is moot...they have not lost anything because they have not tried to sell it...

the housing market was out of control in some areas--in this area we did not see the same type of price appreciation that states like CA, NY, NJ, FL, NV did with speculative property...for all the homes built in 06 to 08 there were few that were bought by speculators who tried to find buyers during the construction process or soon after...
some builders who could not sell their homes may be financially able to rent them out and keep title to them vs getting them go back to the bank--that is not speculation since builders don't consider themselves landlords...they want to sell those homes but they also don't want to give away too much..

most of them were bought by people to live in--
some of these were purchased at the top of the market in 06 and 07 and some of them were probably overpriced in that land speculators ran up lot prices and developers ran up home prices--but remember that in 05 there were 4 major hurricanes which had a definite impact on the cost of construction materials...
concrete, sheetrock, plywood, lumber, reinforcing steel, even items like mfg doors and windows saw their prices and desireability skyrocket...when normal price structure is upset due to natural phenomena, you can't just set back the clock the next year and say well--last year's house was 20k more expensive because of price inflation/demand for rebuilding from hurricanes so this year we will knock the price back down...
it did not work that way...once suppliers knew they could get those prices for those materials, they just left them up there...
prices for building materials have not dropped as much as the clothing and other consumer goods that you see on sale at the mall...
my husband works in oil and gas and even though the price for o/g at the wellhead has dropped significantly since last summer--there has not been a similar drop in service company fees like Halliburton or Schlumberger--they have been VERY reluctant to reduce their fees because they know if they do, it will take time to climb back up that fee pyramid whereas oil could go up very quickly (and it has been coming back in past few weeks)...
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Old 06-08-2009, 08:06 PM
 
Location: Dallas/Fort Worth, Texas
4,128 posts, read 13,164,961 times
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Quote:
Originally Posted by wolsmr View Post
You meant asking price?
And how is this any indication of market trend?
oops, sorry, yes I did mean 98% of list price.

Naima
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Old 06-08-2009, 08:23 PM
 
27,485 posts, read 44,973,761 times
Reputation: 14056
the 1900 white oak clearing house looks like it went to foreclosure in 07 from the original owners--so I kind of doubt your sales price for that...

where did you get your sales info/pricing for either house?
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Old 06-08-2009, 08:27 PM
 
Location: Dallas/Fort Worth, Texas
4,128 posts, read 13,164,961 times
Reputation: 2527
Quote:
Originally Posted by loves2read View Post
the 1900 white oak clearing house looks like it went to foreclosure in 07 from the original owners--so I kind of doubt your sales price for that...

where did you get your sales info/pricing for either house?
That was a transfer to a relocation company in 2007 not a bank. The sales price she/he mentioned is correct.

To the OP, have you had more activity and hopefully a contract since you posted your questions?

Naima
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Old 06-08-2009, 09:54 PM
 
15 posts, read 39,014 times
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Quote:
Originally Posted by loves2read View Post
I think she did mean the contract price is 98% of listed price...and that YOU don't understand that there is a floor to this market--that people are not panicking about selling and giving their homes away...but that some people who might have unique circumstances MAY have their homes on the market at less that what the comps for neighborhood are--and those houses may have specific, unique reason for doing so...
but that it takes time to sell a house--and people should be aware of the avg DOM for listings and understand that is an average...two homes listed 9 mo apart--both finally get contracts after the second one is on the market for a week--the average DOM will be HALF of their total days--does not represent the truth of either situation...
Your speculation is far far from what's happening now. There is a floor to every single market in this world (maybe except for Detroit). The real question is where that floor is. I don't know the answer and frankly I think you are even more clueless. However, I do know the trend is down. Yes, people who don't have to sell probably won't sell in this market. However, the fact is, there are more people who HAVE TO sell now and that along with the overall economic condition dictates the housing market trend here. Again, I wasn't talking about a few outliers. It's a whole lot more than a couple of examples I offered.


Quote:
most things are relative--and if no one is interested in selling a house, then the selling price is moot...they have not lost anything because they have not tried to sell it...
Again, what if you have to sell?

Quote:
the housing market was out of control in some areas--in this area we did not see the same type of price appreciation that states like CA, NY, NJ, FL, NV did with speculative property...for all the homes built in 06 to 08 there were few that were bought by speculators who tried to find buyers during the construction process or soon after...
some builders who could not sell their homes may be financially able to rent them out and keep title to them vs getting them go back to the bank--that is not speculation since builders don't consider themselves landlords...they want to sell those homes but they also don't want to give away too much..
That's right. However, if you study the housing price change in Southlake from 2000-2007, there is nothing dull about it. And remember, there is always a spill effect in the economy.

Last edited by wolsmr; 06-08-2009 at 10:03 PM..
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Old 06-08-2009, 09:55 PM
 
15 posts, read 39,014 times
Reputation: 15
Quote:
Originally Posted by loves2read View Post
the 1900 white oak clearing house looks like it went to foreclosure in 07 from the original owners--so I kind of doubt your sales price for that...

where did you get your sales info/pricing for either house?
How about MLS?
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Old 06-10-2009, 12:34 PM
 
37 posts, read 122,378 times
Reputation: 28
I thought this forum was about Lakewood, Garland, and Plano. Where'd this Southlake guy come from?

And how come I haven't seen TyCobb picking fights on here lately? He was one of my favorite characters on this show.
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