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When a house in your area is priced incredibly high? I was just looking in my old town and SHOCKED at some of the house prices. No wonder they are sitting...
Okay, that's one. How about others? (In doing a CMA, I always have to have at least 3 solds, as one doesn't show a pattern.)
I've been surprised before, by the way, by a house selling for asking, or more than asking, in a "not as good area", when I thought it was priced high, because it turned out that that was the area that was just about to come "hot" as the "hot" area was burning out as a destination.
YES- when we had to relisit it amazed me the homes going on the market. Since we were below comps I felt even better about our price. The builder who built our home (small builder, only builds 1 per year) had built a home the year after ours and the people there (who we know) just listed theirs. IT is 300 sq feet bigger but basically a beige box (we had added color, landscaping, wood work, built-ins,etc) they listed over 125K more thatn we were listed. Well, they likely won't be too happy when they see what we ended up taking (200K off their price!!!
When a house in your area is priced incredibly high?
Unfortunately, I'm more amazed when I see a house that is priced fairly for today's market. They seem to be the exception rather than the rule. They sell in a few months, while the others sit.....
The ones I've tracked that came on high and dropped their prices usually drop between 75-125k before they go under contract. It's sad to see so many houses priced so unrealistically for so long. Some of them eventually end up in the "Lis Penden" notices and that explains everything.
Timely post.
We walked through an open house in our neighborhood this weekend. Talk about high pressure! The RE agent informed us she was THE top agent in the area back in 2005, and after taking some time off to spend w/family she was just getting back into the market.
She also said she had already had an offer on the house (been on the market 5 days) but since it was 10% below asking price... the owners didn't even bother countering. She was sure that if we wrote up a full price offer she would be able to get us the house.
Yea, no doubt.
I know price per sq ft is not the be all, end all. But for quick illustration:
this particular house was listed at $420 SF.
The next closest closest asking price in the neighborhood is $406 SF
the highest selling price in the area in the past 6 months was $404 SF
I'm thinking this woman is stuck in a time warp trying to do business top of the market style. My guess is that any offer of only 10% below that crazy high asking price was in her mind only.
A home we are looking at has come down 100K in the last year (it's been listed for 13 months) and it's still 50K above comparables in the area. Comparables that were listed more reasonably sold on average in about 60-70 days. We're hesitant to even bid as this seller seems unaware of market value. The market keeps declining but he keeps playing catch-up ... and all of his neighbors are getting their homes sold before him.
We have our home listed at 30K below any others our development (with the same upgrades, size within +/- 200 sq. ft), so we're keeping our fingers crossed. If the market doesn't stabilize, we will decrease the price regularly to stay competitive. It's just how the market is right now, you need to offer a great deal to get the buyers to make the leap from contemplating to making an offer.
Location: Halfway between Number 4 Privet Drive and Forks, WA
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Unfortunately, I'm more amazed when I see a house that is priced fairly for today's market. They seem to be the exception rather than the rule. They sell in a few months, while the others sit.....
People just cannot accept this market. I genuinely feel badly for those who bought high a couple of years ago and now have to sell. That is truly unfortunate and I wish the best as there are many out there. As for the rest who speculated and bought houses expecting windfall profits? Wake up and smell the coffee. You can put it on for whatever you want, but in this market price is 90 percent of the battle. If a buyer is looking in your area there are probably 10 more houses on the market just like yours.
That said, things will get better, they always do. I am trying to sell also so i have first hand experience. We just LAUGH at the houses priced 10 and 20 percent higher. It's like hey, I DEMAND you pay this for my house as I was counting on that extra money. I expected it and now it shall be....uh-uh. I hope we all learn a lesson from this the next time a bubble starts developing.
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