My neighbor just listed their home for $170K (Phoenix: for sale, foreclosures)

[sassieb75]

We just had our house appraised at $220K.... I know the shape that the market is in right now. Their home may not even sell. Why am I finding myself a little irritated? We were hoping to sell maybe, one to two years down the road. Is this going to affect things? Also, if we want to rent out our home, will the fact that you can buy now for less than some homes rent for, cause a problem?

[tripper76]

Are they doing a short sale? Because if so, they could list it for anything. The lender still has to approve the selling price. Otherwise, if $170k is the market value then its the market value. Neither of you have any control over that. If they want to sell, they aren't going to overprice it just to keep the neighbors from getting upset. And just because yours appraised for 220k doesn't mean you could sell it for that. What about the rest of the area? Are similar homes selling for 170k or 220k?

[HX_Guy]

If it sells at that price, short sale or not, it will affect the price of your house now and down the road. The $170k will be the new comp price when people are looking in that neighborhood and people figure if that house sold for $170k, then there is no reason yours shouldn't cost around the same.

[sassieb75]

Originally Posted by tripper76

Are they doing a short sale? Because if so, they could list it for anything. The lender still has to approve the selling price. Otherwise, if $170k is the market value then its the market value. Neither of you have any control over that. If they want to sell, they aren't going to overprice it just to keep the neighbors from getting upset. And just because yours appraised for 220k doesn't mean you could sell it for that. What about the rest of the area? Are similar homes selling for 170k or 220k?

Well, duh...I realize that they aren't concerned about what the "neighbors" think about it. I know good and well we'd never get $220K for ours....that's why we aren't selling now! But, to answer you question, it's not a short sale. I guess they just must really want to get out of it and move. That part doesn't bother me because we aren't friends with them anyhow. My point was I didn't even understand why I was irritated in the first place, but that was my honest gut reaction when I saw the guy putting the "For Sale" sign up this morning!

[fcorrales80]

Originally Posted by sassieb75

Well, duh...I realize that they aren't concerned about what the "neighbors" think about it. I know good and well we'd never get $220K for ours....that's why we aren't selling now! But, to answer you question, it's not a short sale. I guess they just must really want to get out of it and move. That part doesn't bother me because we aren't friends with them anyhow. My point was I didn't even understand why I was irritated in the first place, but that was my honest gut reaction when I saw the guy putting the "For Sale" sign up this morning!

You are wise to wait a couple of years to sell your house. This is not the first time there has been a real-estate bust in the nation or Phoenix. The market will rebound, not to 2005 levels within 2 years, but homes will start to increase in value once the "dead" weight of investor foreclosures and ARM loan foreclosures are absorbed by the market.

[ArizonaBear]

Originally Posted by sassieb75

Well, duh...I realize that they aren't concerned about what the "neighbors" think about it. I know good and well we'd never get $220K for ours....that's why we aren't selling now! But, to answer you question, it's not a short sale. I guess they just must really want to get out of it and move. That part doesn't bother me because we aren't friends with them anyhow. My point was I didn't even understand why I was irritated in the first place, but that was my honest gut reaction when I saw the guy putting the "For Sale" sign up this morning!

The cold, ugly reality is supply and demand------never mind that your family did nothing wrong.

[Ponderosa]

Originally Posted by HX_Guy

If it sells at that price, short sale or not, it will affect the price of your house now and down the road. The $170k will be the new comp price when people are looking in that neighborhood and people figure if that house sold for $170k, then there is no reason yours shouldn't cost around the same.

That might have some impact on a buyers thinkings, but with that logic, all our homes would never change and be selling for what they were in 2005 still. Supply and demand, not comps, dictates price. Price equilibrium is dictated by market factors. Comps are not a market factor. The buyer of that house is going to get a good deal and make a lot of money when the supply situation changes.

Anyhow to OP, I would not be too concerned if you are looking one to two or more years out. Price ultimately will go back to the trendline. If your house was appraised at 220 recently that probably is pretty near or even a little below trend.

[azcater]

Sassie, I can understand where you are coming from... get this.. our neighbor just listed their house for... wait for it... $545k. I almost choked when I saw the flyer. They are doing FSBO but have a realtor in the family that is helping them. I was thinking.. "are you insane, there is no way your house is going to sell for anything close to that" I'm irritated because it means the house will be on the market forever with drivebys all the time and then more then likely because they won't reduce the price, it will turn into a rental.

[sberdrow]

Originally Posted by Ponderosa

That might have some impact on a buyers thinkings, but with that logic, all our homes would never change and be selling for what they were in 2005 still. Supply and demand, not comps, dictates price. Price equilibrium is dictated by market factors. Comps are not a market factor. The buyer of that house is going to get a good deal and make a lot of money when the supply situation changes.

Anyhow to OP, I would not be too concerned if you are looking one to two or more years out. Price ultimately will go back to the trendline. If your house was appraised at 220 recently that probably is pretty near or even a little below trend.

I for one looked at the price of the other homes and made a bid based on the LOWEST price comp I saw, and my offer was accepted. Then I sold it again 6 months later for just a little more. The guy next to me with the nearly identical home put his home up for sale for 31k more, and 5 months later has taken it off the market. I think, unintentionally, I ruined the housing market in that neighborhood. Oh well... I got what I wanted and the heck with anybody else. Its all about me you know

[Beena]

Ummm....I think I am going to ignore this last post :0 Sberdrow is either a flipper and proud of it or not a flipper and making fun of flippers. As we all should.

Wait 2 years to sell? Wow. That house won't be 170 two years from now. It will be considerably less. And suppose 4 years from now it bottoms at 120? We may hover around the bottom for a couple of years before we return to normal appreciation of 3% per year.

Do the math on that. 220 is a lifetime away.