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My own research shows that for the house in 550k-700k range, 10-15% below 2006 price is the current market value for most areas in west cary. (preston, glenkirk, highland oaks, weston oaks. carpenter village.)
It is funny to see some sellers still list the houses at an "appreciation" mode just to make the houses sitting on market for over years without even any showings...
My own research shows that for the house in 550k-700k range, 10-15% below 2006 price is the current market value for most areas in west cary. (preston, glenkirk, highland oaks, weston oaks. carpenter village.)
It is funny to see some sellers still list the houses at an "appreciation" mode just to make the houses sitting on market for over years without even any showings...
Yes, it makes absolutely no sense does it. I just came across a FSBO at a 27612 location. They paid 600K for it in 2005, and now want 650K. Its a poor lot, and there's four other houses at the same price on an adjacent street which were built in 2006 and still remain empty. In other words, there's not a hope of them getting the appreciation on this house if a new house around the corner isn't selling.
A on site agent told me that in her developing subdivision (27519). A seller list his 2006 built home at 680k (purchased from her at 605k at that time).
She has 6 inventory houses sit (phase III, most are 500-1000 sqf. bigger) in the same subdivision (two are right cross the street from that house). The list price for those are 570-630k ..
But that seller subsequently got smart and reduced their price by $15K to be more competitive, if I'm guessing at the correct listing, so now they're only 50K higher than the larger, brand new construction across the street?
Yep, there appears to be a gap between the sellers that get it (and end up selling) and those that don't (and end up sitting on the market for 1 year or 2). If you look at the median list price for Raleigh using HousingTracker.net: Median Home Asking Price & Inventory Data for Raleigh, North Carolina, you can see that sellers are trying to get about 2% more than last year for their house. Looking at the closed sales for Wake County in April, the median price was down about 6%. This isn't an exact comparison, but I think it shows that even though some asking prices might be going up, the stuff that's priced below last year's prices is what's moving.
I'm seeing the exact same thing in some new neighborhoods a bit below the price range you're talking about. I can point out one where there's a resale that's been sitting for months. It's the lowest priced house out of the 15 in the neighborhood with a 3 car garage and it's still getting beat out by the builder's new stuff. Does that mean bigger incentives from the builder, less than ideal location, the allure of a brand new house, or just bad luck competing with 30+ other listings within easy walking distance?
I don't feel too bad for them since they're trying to get a $70K profit out of the sale (commission would cut that in half, but still). But at least they're being reasonable and pricing below the builder - it's not enough, but at least it isn't and obviously bad strategy like the one you described.
I don't know about houses in the $550-$700K range, but I work with somebody who lives in Cary but is moving to another part of NC. They sold their house in under 45 days and made a little bit of profit after owning it for just over 3 years. This was in the $300-$350K range.
They were in an excellent location and priced it on target from the begining.
But that seller subsequently got smart and reduced their price by $15K to be more competitive, if I'm guessing at the correct listing, so now they're only 50K higher than the larger, brand new construction across the street?
Yep, there appears to be a gap between the sellers that get it (and end up selling) and those that don't (and end up sitting on the market for 1 year or 2). If you look at the median list price for Raleigh using HousingTracker.net: Median Home Asking Price & Inventory Data for Raleigh, North Carolina, you can see that sellers are trying to get about 2% more than last year for their house. Looking at the closed sales for Wake County in April, the median price was down about 6%. This isn't an exact comparison, but I think it shows that even though some asking prices might be going up, the stuff that's priced below last year's prices is what's moving.
I'm seeing the exact same thing in some new neighborhoods a bit below the price range you're talking about. I can point out one where there's a resale that's been sitting for months. It's the lowest priced house out of the 15 in the neighborhood with a 3 car garage and it's still getting beat out by the builder's new stuff. Does that mean bigger incentives from the builder, less than ideal location, the allure of a brand new house, or just bad luck competing with 30+ other listings within easy walking distance?
I don't feel too bad for them since they're trying to get a $70K profit out of the sale (commission would cut that in half, but still). But at least they're being reasonable and pricing below the builder - it's not enough, but at least it isn't and obviously bad strategy like the one you described.
You know, if that is a BIG IF we had to move from FV today, we bought in 06 we would price 40K LESS than we bought! Yes IF we had to move the house and MOVE we would sell the thing by price. By being lower than everything around. That would mean a loss, however where ever we would be going we would be buying at a lower price point.
Face facts the housing market everyplace is in big trouble. Gasoline will never be cheap again, suburbia is well in trouble. Hope you have a grocery store within walking distance!
Take 20% off your original purchase price if you bought from 1/06 in the triangle and boom price it and go!
That is bad advice because it is too general. Pricing needs to be done on a case by case basis. It is influenced by condition, location, price point, and competion as well as other factors. Not everyone needs to drop their price by 20% to move it in the current market. Each neighborhood is different. I bought a resale in N. Raleigh in 2006 and could easily get what I paid for it back then. I know this because I have comps as recent as last week that support that fact.
Pricing correctly and realistically is important, but there is nothing realistic about telling everyone who bought in 2006 to reduce their price by 20%. Such a statement is further evidence that some people do need the advice of a good realtor to help them price their house correctly.
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