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Seventy-five percent of home owners say their homes are worth more than the recommended listing price, according to real estate professionals recently surveyed by HomeGain. On the other hand, 68 percent of home buyers say homes are overpriced.
2b - didn't you know "sweat equity" is worth at least 2 times more valuable? Pfft....I thought they tought this in RE classes across the country. guess I was wrong.
Just kidding. I'm actually not surprised. Buyers think homes are overpriced, sellers think their homes are worth more than they actually are.
I go one better....Because I limit the geo area I work, I have first hand knowledge of the comparable properties, sold, pending and active. I know why a property sold for what it did, when it did. In otherwords, I produce the facts to support my opinion.
Since when do facts matter? Selling property is highly emotional. The general public persists with a common and mistaken beleif that listing agents sell property. Sellers tend to hire the agent that does the best job of selling themself. The agent who comes closest to the seller's perception of value often wins the listing. This is true regardless of the market.
Last edited by middle-aged mom; 09-16-2011 at 02:52 PM..
Since when do facts matter? Selling property is highly emotional. The general public persists with a common and mistaken beleif that listing agents sell property. Sellers tend to hire the agent that does the best job of selling themself. The agent who comes closest to the seller's perception of value often wins the listing. This is true regardless of the market.
Sometimes I wonder whether people are completely ignorant about current market conditions, or whether they're willfully ignorant, and just can't come to terms with the fact that what's happening around them applies to their property as well. And I don't think it helps that so many people bought into the real estate prices never go down myth.
A would be seller near me just dropped his price for the 4th time. You'd think that might mean he's getting serious about selling, right? Not so fast though. His current asking price is $175,000 more than the exact same model house, located just down the street, sold for a couple of months ago. Granted the would be seller is on a slightly better lot and has done some upgrading, but IMO the guy is delusional if he thinks he's going to get that kind of premium.
Of course that doesn't excuse prospective buyers who are skittish about future price declines, so they low ball offer what they think the house might be worth 6 months or a year from now.
Sometimes I wonder whether people are completely ignorant about current market conditions, or whether they're willfully ignorant, and just can't come to terms with the fact that what'shappening around them applies to their property as well. And I don't think it helps that so many people bought into the real estate prices never go down myth.
It's called terminal uniqueness.
Short term memory or perhaps no knowledge that real estate fluctuates over time. There were several foreclosures in my sub division during the 90's. Only one in the 00's and that was because the owner passed away.
Home prices are off about 25% from peak.
In our city, the average list price is more than $200,000 higher than the average sold price. We call the difference "fantasyland". An agent in our office just listed a house at a 10% higher price than it sold for in 2005 (we are down 40% or more since then). So the $798K list price is maybe a $450K house. I can't believe the agent took that listing since it's just money down the drain, and I just wonder what the seller is thinking.
And I've heard it all. "I'm not just going to give it away", "I'll just float it out there and see what happens", "I don't have to sell", "My house is better because..."
So what I read somewhere in the internet is not totally wrong, they said usually the listing agent mark up the price about 25%, so the buyer can make offer for 25% less of the listing price and then go up a little bit...
Quote:
the $798K list price is maybe a $450K house
In your city, they list the price up to 77% higher than the value of the house?
So what I read somewhere in the internet is not totally wrong, they said usually the listing agent mark up the price about 25%, so the buyer can make offer for 25% less of the listing price and then go up a little bit...
In your city, they list the price up to 77% higher than the value of the house?
Angel, there is no magic %. You're going to drive yourself crazy looking for something that doesn't exist.
The point of this thread is that sellers value their home for more than what the market indicates they are actually worth. Ultimately a listing agent will list the home at whatever price the client (seller) requests. In the example you cited, based on the market in this particular area the home should be listed at $450k but THE CLIENT wants to list the home at $798k because thats what they feel the home is worth. When and if a buyer comes along comps are going to indicate that the home is worth closer to the $450k amount. Hence the "big disconnect between buyers and sellers in value"
NOWHERE in any of these posts has a single agent said "I always list the clients home at X% above comp value" so stop looking for it.
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