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Old 03-04-2014, 04:22 PM
 
Location: Eastern Tennessee
230 posts, read 290,924 times
Reputation: 362

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We are planning a move soon and have visited the area where we are relocating many times over the past five years. We now have a good sense of areas and neighborhoods. In addition, we have been reviewing houses on the market for the past 3 years.

Every so often we see a house that is so obviously overpriced versus the market it stands out. I always wonder how the sellers came up with the pricing. I also wonder why an agent would want to bother with a listing like that. These homes are on the market for 250+ days versus the average of 90 days and have had multiple price decreases.

How do the sellers get such an over-inflated idea of the value of their home?
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Old 03-04-2014, 04:25 PM
Status: "It's summer!" (set 4 days ago)
 
Location: Asheville, NC
11,289 posts, read 25,060,665 times
Reputation: 4051
Quote:
Originally Posted by linnemj View Post
We are planning a move soon and have visited the area where we are relocating many times over the past five years. We now have a good sense of areas and neighborhoods. In addition, we have been reviewing houses on the market for the past 3 years.

Every so often we see a house that is so obviously overpriced versus the market it stands out. I always wonder how the sellers came up with the pricing. I also wonder why an agent would want to bother with a listing like that. These homes are on the market for 250+ days versus the average of 90 days and have had multiple price decreases.

How do the sellers get such an over-inflated idea of the value of their home?
Sometimes they have no choice but to list it that high because they owe the bank that much money. Some people are in denial and think their house is worth that much.
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Old 03-04-2014, 04:35 PM
 
Location: South Dakota
434 posts, read 549,077 times
Reputation: 655
Sometimes I think sellers don't care, or understand, that their houses are compared to a market. They think about what they want to get from the sale of their house so they can do what they "need" financially.

Last year I looked at purchasing a house that had been purchased 4-5 years before. The market had been flat for almost 10 years, and the owner had done no upgrades to the property (she was in the process of doing a little landscaping, slowly). The owner put the house on the market for 18% more than she paid, and she wasn't willing to negotiate. Needless to say, I walked away.

My advice is NEVER deal with people who are clueless or who are hoping to find someone clueless.
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Old 03-04-2014, 04:49 PM
 
Location: Massachusetts
5,841 posts, read 6,479,788 times
Reputation: 4184
They may be flippers.

If I loved a property, I would not hesitate to make an offer. Nothing ventured, nothing gained as the saying goes.
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Old 03-04-2014, 04:54 PM
 
Location: Florida -
7,929 posts, read 9,533,938 times
Reputation: 14030
Quote:
Originally Posted by slowdog101 View Post
Sometimes I think sellers don't care, or understand, that their houses are compared to a market. They think about what they want to get from the sale of their house so they can do what they "need" financially.

Last year I looked at purchasing a house that had been purchased 4-5 years before. The market had been flat for almost 10 years, and the owner had done no upgrades to the property (she was in the process of doing a little landscaping, slowly). The owner put the house on the market for 18% more than she paid, and she wasn't willing to negotiate. Needless to say, I walked away.

My advice is NEVER deal with people who are clueless or who are hoping to find someone clueless.
... And even if they do find an equally 'clueless' buyer ... they also do not seem to realize that unless the buyer is paying cash, ... the banks will not loan them more than the appraised value???
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Old 03-04-2014, 05:00 PM
 
Location: DFW - Coppell / Las Colinas
29,078 posts, read 33,385,041 times
Reputation: 34460
Many areas here there is a shortage of homes. Many times a seller CAN overprice a home and get it if there is huge demand and low inventory.
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Old 03-04-2014, 05:07 PM
 
Location: Austin
6,966 posts, read 16,402,789 times
Reputation: 9133
The very first listing I ever had almost 14 years ago was listed high because the sellers wanted to pay off all credit card debt, pay off their car, payoff a student loan, etc... you get the idea. The price wasn't the value of the home but what the sellers wanted out of it.

I listed it because I was excited to get my first listing and get potential buyer calls from the sign. I tried many times to get them to reduce it, but they wouldn't. And then when my 6 month listing expired, another agent was able to talk them into a reduction, and it sold several months later. It was stagnant on the market.
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Old 03-04-2014, 05:55 PM
 
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
6,957 posts, read 18,172,433 times
Reputation: 6342
Quote:
Originally Posted by FalconheadWest View Post
I tried many times to get them to reduce it, but they wouldn't. And then when my 6 month listing expired, another agent was able to talk them into a reduction, and it sold several months later. It was stagnant on the market.
Now THAT happens all the time.

I recently had a listing that I inherited from an agent who moved away from the area. It was horribly (IMHO) overpriced. It sold for 3K less than asking with another agent to a buyer who had lost out on 4 previous tries to buy a house. Buyer was so motivated and had cash, that they didn't even get an appraisal.

I try to never take a listing that is overpriced, but there are those agents that, for whatever reason, will tell the seller what they want to hear. Then they do their best to get price reductions, sometimes successfully, sometimes not like in Falcon's case.

Once a buyer is exposed to 4 or 5 homes in person, they usually have a pretty good idea of what's priced correctly and the overpriced listing languishes on the market. We have a home in my market that has been for sale for almost 5 years under a variety of agents. In the falling market, the owners chased the price down, but were almost always at least 50K above the market. Original listing price? 325K. Current asking price? 173K. Over the years I've even written offers on it that would have resulted in 50K more cash than they are getting now. Good news is it is in escrow again. Bad news the owners are good acquaintances and I feel bad that they didn't see the light (or were ill advised).

It's a mad mad mad mad world.
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Old 03-04-2014, 06:10 PM
 
25,113 posts, read 48,258,091 times
Reputation: 18260
Right now there is a new listing in a neighborhood where I own a home.

My neighbor recently asked me if I would consider buying their property... things were going OK untill this new listing hit...

The couple outbid 13 others 18 months ago and now has it on the market at double what they paid for it... and no they didn't do any work to it... still has the same paint inside and out as it did when foreclosed.

The owners said they will just wait it out... said they will sell when they get their price.

Needless to say... I will not be buying anything in the near future.

Last edited by Ultrarunner; 03-05-2014 at 11:09 AM..
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Old 03-04-2014, 08:21 PM
 
15,604 posts, read 16,232,144 times
Reputation: 21773
Quote:
Originally Posted by linnemj View Post
We are planning a move soon and have visited the area where we are relocating many times over the past five years. We now have a good sense of areas and neighborhoods. In addition, we have been reviewing houses on the market for the past 3 years.

Every so often we see a house that is so obviously overpriced versus the market it stands out. I always wonder how the sellers came up with the pricing. I also wonder why an agent would want to bother with a listing like that. These homes are on the market for 250+ days versus the average of 90 days and have had multiple price decreases.

How do the sellers get such an over-inflated idea of the value of their home?

Some houses are priced at I can't sell for less price. Lots of people are still struggling through the bubble fiasco. Selling for less would mean short sale or having to come up with money to satisfy the loan. Those are the sellers praying for another bubble so they can get away from under the elephant called a house.
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