Buyers requesting closing costs whats that about (Falls Church, Washington: real estate, loans)

[JD984]

Originally Posted by Alltheusernamesaretaken

Well, no.

People may pay a ridiculous price on a house for any number of reasons. They must buy now, they cannot fathom driving more than 20 miles to work, etc.

Just because someone buys the overpriced item doesn't mean that's what it's worth. It just means that person made the decision to overpay for whatever reason.

If you think homes are overpriced in this area, you should probably rent (or move to an area where you're more comfortable with the prices). Railing against the choices that others have made, if you're personally priced out of the local market, can be an exercise in sheer frustration.

Fortunately for the OP, she's in an area where plenty of people want to buy houses and are prepared to accept the risk that local housing prices may decline in the future.

[saganista]

Reminder: Prices are set by what willing and informed buyers and sellers are able to agree upon. This is the very definition of fair market value. There is no independent yardstick anywhere to say anything otherwise.

[Alltheusernamesaretaken]

Originally Posted by JEB77

If you think homes are overpriced in this area, you should probably rent (or move to an area where you're more comfortable with the prices).

Ya think? Perhaps that's why we are renting?

So that we are not part of the problem, a few years down the road, as the market continues to decline and we say "Oh no, what shall I do? I bought my tiny little house for $1.2 million and can only sell it for $750K!"

Yeah, some of us aren't going to buy and then blame everyone else when we couldn't afford it in reality.

[JD984]

Originally Posted by Alltheusernamesaretaken

Ya think? Perhaps that's why we are renting?

So that we are not part of the problem, a few years down the road, as the market continues to decline and we say "Oh no, what shall I do? I bought my tiny little house for $1.2 million and can only sell it for $750K!"

Yeah, some of us aren't going to buy and then blame everyone else when we couldn't afford it in reality.

I congratulate you for not over-extending yourself financially, despite the temptations that might be out there to do so, but I honestly don't think your "example" has a lot of relevance to the OP's current situation as a seller, since:

- her house isn't tiny;

- she's not listing her house for anywhere close to $1.2 million;

- $1.2 million would get you a very large house, not a tiny one, in Vienna;

- you'd be hard pressed to identify a single house in Vienna that's come down in value from $1.2 million to $750K in recent years; and

- the number of foreclosures in Vienna is very small compared to other parts of the country (i.e., it's tended to attract folks who generally can chew what they bite off).

You can always speculate that local prices will decline in the future, for any number of reasons, but in the interim I'm pretty sure the OP is going to find a buyer for her house, regardless of whether she agrees to pay their closing costs.

[Denton56]

Originally Posted by Dwellington

That's great in theory, but not in practice. A lot of sellers don't view it as a business transaction, but they should! In some ways, I can see that since they've lived there, and it's become an extension of themselves. However, [seller] egos run rampant in NoVa, even when trying to buy a person's home.

It's not just in NOVA. Everyone, everywhere, wants to think that they bought the best house, in the best neighborhood, and did the best at fixing it up. Their taste is the best, so of course they should get top dollar for their house. It's very different than any other financial transaction. Selling YOUR house is VERY personal and people take it very personally. If your house doesn't sell instantly, that means not everyone in the world thinks you bought the perfect house, in the perfect neighborhood, and then added the best fix ups. People take it personally, they feel its a personal criticism of their choices. It's human nature to feel that way.

[Denton56]

Originally Posted by saganista

Reminder: Prices are set by what willing and informed buyers and sellers are able to agree upon. This is the very definition of fair market value. There is no independent yardstick anywhere to say anything otherwise.

Wow! It's reassuring to see a liberal who understands how markets work! Congrats!

[Dwellington]

Originally Posted by boyd888

So for buyers it is a complete wash.

It is, but I think psychologically, it looks better to the seller. Makes them think they're getting as close to their listing price as possible.

[Dwellington]

Originally Posted by eyeball

For those who continue to complain about people pricing their houses too high, you are making your economic ignorance obvious.

Not so. Nothing wrong with a buyer purchasing a reasonably-priced home. There are some reasonably-priced homes (and realistic sellers) in NoVa, and they do indeed sell, as well they should...because they're priced to sell.

Originally Posted by eyeball

If the houses are selling, then they are not priced too high. Supply, demand, elasticity, blah, blah, blah...

No, they're definitely priced too high (again, look at the comps), however, the question is "who" is paying the high prices? What characteristics describe this unwise buyer who wants to willingly pay more for the home than the comps show—and in effect, pay more than the home is worth? And in effect, become one of—if not the—most expensive home in the neighborhood.

[Dwellington]

Originally Posted by Alltheusernamesaretaken

Well, no.

People may pay a ridiculous price on a house for any number of reasons. They must buy now, they cannot fathom driving more than 20 miles to work, etc.

Just because someone buys the overpriced item doesn't mean that's what it's worth. It just means that person made the decision to overpay for whatever reason.

[Dwellington]

Originally Posted by JEB77

If you think homes are overpriced in this area, you should probably rent (or move to an area where you're more comfortable with the prices). Railing against the choices that others have made, if you're personally priced out of the local market, can be an exercise in sheer frustration.

Right, no one says you have to buy, or pay ridiculous prices. Rent, move, or pay a realistic and FMV based on comps. Yes, those are the options.