Reasonably priced = reasonable buyers? (foreclosures, investment, mortgages, accept)

[verobeach]

As I've posted here before, my home is currently for sale. A home in our subdivision currently received an offer for $100,000 less than asking price. This seems to be the norm in this area. So my question is this... How low can you price your house when you know the buyers are going to suck your eyeballs out? We'd love to reasonably price our home but buyers think they can come to Florida and strike the deal of the century. Would a reasonably priced home attract reasonable buyers?

[SaraSatin]

If that is the norm in your neighborhood were they all priced the same? If they were all priced around the same and were all selling for around $100k less then you should be able to go lower, but expect to sell in the price range the others sold in. You haven't told us what the starting price range is though.

[CouponJack]

Originally Posted by verobeach

As I've posted here before, my home is currently for sale. A home in our subdivision currently received an offer for $100,000 less than asking price. This seems to be the norm in this area. So my question is this... How low can you price your house when you know the buyers are going to suck your eyeballs out? We'd love to reasonably price our home but buyers think they can come to Florida and strike the deal of the century. Would a reasonably priced home attract reasonable buyers?

Think of the buyers' perspective. To them, your prob sucking their eyeballs out because your house is so overpriced.

The "market" will tell you who's right and wrong.

[Frudy McRomson]

Originally Posted by CouponJack

Think of the buyers' perspective. To them, your prob sucking their eyeballs out because your house is so overpriced.

The "market" will tell you who's right and wrong.

Soooooo right.

If a house escalated in price by 20%/year or so, it went up too much too quickly. Of course, people were confused when they hear catchy phrases such as "RE only goes up" and "you have to live somewhere" thinking that these gains could never reverse themselves. It's a shame that something that USED to be stable like housing became unstable through pure speculation and greed.

I don't care what anyone says. The past few years house prices tracked like the stock market, not like houses. Expect the same behavior on the way down.

[verobeach]

Originally Posted by SaraSatin

If that is the norm in your neighborhood were they all priced the same? If they were all priced around the same and were all selling for around $100k less then you should be able to go lower, but expect to sell in the price range the others sold in. You haven't told us what the starting price range is though.

I am already on the low end at $525,000. There are 2 on the market at $600,000 and 1 at $650,000. And you are right, Sara, they are all selling in the $400,000s. My question is... is it the habit of buyers to just randomly offer $100,000 less or is there a formula for already reduced, somewhat reasonably priced homes? We're thinking of coming down to $499,000 after the holidays.

[Frudy McRomson]

Originally Posted by verobeach

I am already on the low end at $525,000. There are 2 on the market at $600,000 and 1 at $650,000. And you are right, Sara, they are all selling in the $400,000s. My question is... is it the habit of buyers to just randomly offer $100,000 less or is there a formula for already reduced, somewhat reasonably priced homes? We're thinking of coming down to $499,000 after the holidays.

This all depends on how quickly the run up was. If these houses were at 200K or 300K just a couple of years ago, there is nothing that would preclude them from returning to these prices as quickly as next year. If this is true and you need to get out, GET OUT and don't play games with the market.

Some are suggesting that house prices will return to pre-9/11 levels since much of the rapid growth in prices stemmed from EZ money and a switchover from stocks to something that was supposed to be more secure. This artificially created a Ponzi-like scheme for something that was normally a stable investment.

[Racelady88]

O.K., I am a buyer in FL. The part of the state I am in does not have jobs with salaries to support houses that cost $600K, $500K, or $400K. Median incomes here are somewhere around the $40K mark, give or take.

So reasonably priced compared to what? What they were in 2004/2005? What they were in 2000, when regular working people could afford a house?

Also, I can look and see what was paid for a house here in this county. When I see a house that someone paid $60K for 10 years ago and they are now trying to sell for $250K it just pisses me off. 60+ year old homes that still have original kitchens & original glass on glass jalousie windows, and I even saw one with a fuse box for crying out loud. What I have not seen is a house that is worth the asking price. I am not afraid to paint, rip up flooring, gut a kitchen, or even replace a roof. But I am not going to finance someone's retirement for the privilege of doing those things. I realize that many, many folks got sucked in and paid too much for their homes, or cashed out a bunch of equity. I am sorry for those poor decisions on their part. But I am not going to bail anyone out.

[verobeach]

Originally Posted by Evey

O.K., I am a buyer in FL. The part of the state I am in does not have jobs with salaries to support houses that cost $600K, $500K, or $400K. Median incomes here are somewhere around the $40K mark, give or take.

So reasonably priced compared to what? What they were in 2004/2005? What they were in 2000, when regular working people could afford a house?

Also, I can look and see what was paid for a house here in this county. When I see a house that someone paid $60K for 10 years ago and they are now trying to sell for $250K it just pisses me off. 60+ year old homes that still have original kitchens & original glass on glass jalousie windows, and I even saw one with a fuse box for crying out loud. What I have not seen is a house that is worth the asking price. I am not afraid to paint, rip up flooring, gut a kitchen, or even replace a roof. But I am not going to finance someone's retirement for the privilege of doing those things. I realize that many, many folks got sucked in and paid too much for their homes, or cashed out a bunch of equity. I am sorry for those poor decisions on their part. But I am not going to bail anyone out.

Why do buyers assume that a seller needs to be bailed out? I have no mortgage. I'm just selling my house here... not trying to get rich. I just don't want to hand it over.

[AnthonyB]

Originally Posted by verobeach

I am already on the low end at $525,000. There are 2 on the market at $600,000 and 1 at $650,000. And you are right, Sara, they are all selling in the $400,000s. My question is... is it the habit of buyers to just randomly offer $100,000 less or is there a formula for already reduced, somewhat reasonably priced homes? We're thinking of coming down to $499,000 after the holidays.

If comparable homes are all selling in the $400's then the whole area is full of highly ridiculous asking prices. It doesn't sound random, it sounds like the market is screaming what fair market value is but the sellers in your development aren't responding.
Ignore them, price to sell (at the price that is actually selling) and breathe a sigh of relief.

I am giving you reps for the eyeball sucking quote though as that was awesome.

[Racelady88]

Originally Posted by verobeach

Why do buyers assume that a seller needs to be bailed out? I have no mortgage. I'm just selling my house here... not trying to get rich. I just don't want to hand it over.

Didn't mean to offend you. I see it here all over the place. Many sellers can not put a realistic price on their house because the owe too much.

There are 6-10 foreclosures happening here every single day, Monday through Friday. I realize that not all sellers are on the verge of losing their homes, but I still see the majority of sellers trying to make huge profits.

I even have friends who are doing it, and can't figure out why their home won't sell. I have one friend who's place has been on the market for almost two and a half years. She has been through 6 Realtors. She gets few showings, but every showing has resulted in an offer. The highest offer was almost 40% lower than her asking price. She refuses to accept that the place will not sell for enough to pay it off and buy the next place outright. So she grumbles about the fact that she can't sell.

Another friend borrowed heavily against her place. She has two mortgages and a huge HELOC. The house might sell for $150K, but she is asking $300K to get herself out of debt. She also gets very few showings, and has not had a single offer.

The market here is speaking, but sellers are turning a deaf ear.