Is this the reality of home sales ??? (Wantagh: for sale, 2011)

[djdairyp]

Are home values lower than people think. People list their homes on MLS for overinflated prices and they sit on there for months, but when you do a search of recent sales you will see the sale prices are not in line with what people are asking and are much lower.

I did an analysis on wantagh, just near the train station. Of the homes recently sold, most of the actual final sale prices were more in line with the 2010-2011 assessed values than the older assessed values that I think many homeowners use as a basis for their asking price (what they used to be worth). It was actually surprising to see as I previously thought that one could barely get anything in Wantagh for 400,000 and below, but many of the homes are decent size homes in the sub 400,000 range.

Example homes sold since Jan 2009 in the region below sunrise highway between the WSP and 135 walking distance to the train station but not on top of it or by the tracks. Wantagh school district, regular homes, not fixer uppers, mid block locations

4br-2ba-1400sqft - sold 385,000 - assessed 09 - $449,000
3br-1.5ba-1238sqft - sold 345,000 - assessed 09 - $408,000
5br-3ba-2231sqft – sold $440,000 – assessed 09 - $559,400
4br-2ba-1348sqft – sold $389,000 – assessed 09 - $431,000
5br-2ba-1712sqft – sold $310,000 – assessed 09 – $483,000

In comparison, here are two for sale listing in the same neighborhood current listings

1) 2161592 – 4br 2 ba- asking 480,000

2) 2085757 – 3br 2ba (listed as 1 ba on mynassau) - 888 sqft (way smaller) – asking 460,000
(2009 assessed value 470,000, - 2010 assesed value 370,000)

The second listing, even the assessed value which is almost 100,000 less than asking still seems a little high in comparison to recent sales, though the property size is larger than the others.

I wonder if this is the case in many towns in long island and to sell, a homeowner really must list the home more in line with the recent tax assessments?

[Interlude]

Once a house makes it to MLS it's already been passed over a few times, either due to price, location or condition. Really good overall houses sell via exclusives, so I'm not sure MLS is a fair indicator overall. Everyone I know that has bought a house had very little success with MLS.

[djdairyp]

Originally Posted by Interlude

Once a house makes it to MLS it's already been passed over a few times, either due to price, location or condition. Really good overall houses sell via exclusives, so I'm not sure MLS is a fair indicator overall. Everyone I know that has bought a house had very little success with MLS.

How many exclusives are there? Are exclusives listed on realtor's websites because all the listings on their websites seem to have MLS numbers on them as well. What advantage does an exclusive have, it would seem less buyers, or is it a commission thing.

[totallyfrazzled]

Realtors usually charge a lower commission to the seller for an office-exclusive listing. In other words if the going rate for an MLS listing is 5%, the realtor may offer to charge only 4% for an office-exclusive. It's to the advantage of the realtor because they can keep the entire sales commission in-house; the benefit to the seller is of course having to pay less in commission. The drawback to the seller is what you just pointed out: that the house will not appear on the MLS site searches, but only on the realtor's own website and whatever print ads they decide to put it in --- thus exposing the house to fewer potential buyers. However if a buyer has their own agent, that buyer agent should also be looking at those non-MLS venues for available homes for their client.

[Interlude]

Originally Posted by djdairyp

How many exclusives are there? Are exclusives listed on realtor's websites because all the listings on their websites seem to have MLS numbers on them as well. What advantage does an exclusive have, it would seem less buyers, or is it a commission thing.

Homes can be held by realtors as exclusives to their agency. Before MLS existed, this was pretty much all homes out there. Since MLS, realtors tend to do this more with higher-quality homes that they can sell to clients who walk into their agencies. If the home goes MLS, the realtor makes less commission, but obviously an MLS home gets more exposure. So basically they tend to do this only with higher-quality homes that they know they can move without the added exposure of MLS.

If you're looking in a particular area, it's usually best to hook up with a local realtor since you'll get the advantage of their exclusives. When I was looking a few years ago, we must have seen two or three dozen MLS homes before going to a local realtor, who showed us the house we ended up buying within the first few. Some of the most premium homes don't even get to that stage - they're sold before the public even knows they are on the market.

A very large portion of what's on MLS is crap - we toured homes that hadn't been cleaned, homes that needed serious work, homes that hadn't been updated since the 50s - and that was just homes that looked good in the pictures! If it wasn't crap, then it was on a corner, or across from a fire station, or on a main road, or some other deal breaker that wasn't evident from the listing. And if it wans't any of those things, then the price was way too high.

[Arron]

Did you take into account whether any of your examples of sold properties were short sales or foreclosures? There are currently an abundance of these and they can sell much lower than the assessed value.

[Jrprofess]

Originally Posted by djdairyp

Are home values lower than people think. People list their homes on MLS for overinflated prices and they sit on there for months, but when you do a search of recent sales you will see the sale prices are not in line with what people are asking and are much lower.

I did an analysis on wantagh, just near the train station. Of the homes recently sold, most of the actual final sale prices were more in line with the 2010-2011 assessed values than the older assessed values that I think many homeowners use as a basis for their asking price (what they used to be worth). It was actually surprising to see as I previously thought that one could barely get anything in Wantagh for 400,000 and below, but many of the homes are decent size homes in the sub 400,000 range.

Example homes sold since Jan 2009 in the region below sunrise highway between the WSP and 135 walking distance to the train station but not on top of it or by the tracks. Wantagh school district, regular homes, not fixer uppers, mid block locations

4br-2ba-1400sqft - sold 385,000 - assessed 09 - $449,000
3br-1.5ba-1238sqft - sold 345,000 - assessed 09 - $408,000
5br-3ba-2231sqft – sold $440,000 – assessed 09 - $559,400
4br-2ba-1348sqft – sold $389,000 – assessed 09 - $431,000
5br-2ba-1712sqft – sold $310,000 – assessed 09 – $483,000

In comparison, here are two for sale listing in the same neighborhood current listings

1) 2161592 – 4br 2 ba- asking 480,000

2) 2085757 – 3br 2ba (listed as 1 ba on mynassau) - 888 sqft (way smaller) – asking 460,000
(2009 assessed value 470,000, - 2010 assesed value 370,000)

The second listing, even the assessed value which is almost 100,000 less than asking still seems a little high in comparison to recent sales, though the property size is larger than the others.

I wonder if this is the case in many towns in long island and to sell, a homeowner really must list the home more in line with the recent tax assessments?

It could also be a matter of people knowing they will be underbid in the current buyers market and listing a home above the range to get an offer they can live with...may not work of course, but it might be that simple in some cases. The median home value nationally dipped another 15+% for existing homes, fueled by about 45% foreclosure/short sale. This is centered in FL, CA, AZ, etc, but is hastening the correction. In those states homes are well in line, or below, historical norms. Longtime Long Island residents feel that their homes have always been worth more, so they may be slower to reduce their asking price, or simply wait.

[Mjeacoma]

There is always wiggle room when a house is listed MLS or otherwise - it's a different market out there and people are trying get as much as they can (and they should try) but the reality is that it will sell for a fair price for the area and condition of the property

[HomeFinder15]

Originally Posted by Interlude

A very large portion of what's on MLS is crap - we toured homes that hadn't been cleaned, homes that needed serious work, homes that hadn't been updated since the 50s - and that was just homes that looked good in the pictures! If it wasn't crap, then it was on a corner, or across from a fire station, or on a main road, or some other deal breaker that wasn't evident from the listing. And if it wans't any of those things, then the price was way too high.

While there are some less-than-desirable homes listed on MLS, it is not a "very large portion"(IMPO). If a buyer is working with a realtor (especially as a buyer broker) than he/she will not see these homes unless they ask to see these homes. A realtor will show homes meeting the buyers criteria so as not to waste anyone's time. MLS does not equal crap, nor does it only consist of homes previously listed as exclusive. Few homes are exclusive these days, especially those in the medium price range (400-500). I'm glad you finally found your home, and through a realtor.

[hotkarl]

I see the trend to list houses within a price "range" is getting popular on the Island.
For example: 4br 2 bath cape, blah blah blah...$345k-$410K