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I am talking about the fact that today's prices (on NON-bank owned properties) are not 2000 prices. That is where they need to be. For example, if a house sold in 2000 for 300k, today it needs to be priced at 348k. That is 300k plus 2% appreciation every year for 8 years. And what I am seeing is that house being priced at 448k (and up, depending on how delusional the seller is), instead of 348k. Obviously bank owned properties for the most part are priced well, but I am not interested in going that route.
As for what do the comps say, well, the comps say most of what's on the market right now where I am looking is overpriced. The average price per sq foot in that area is $195(what's sold); the average price per sq foot of what is for sale, actually on the MLS, is $265 and up. So it's become a battle of the wills: who will win, the buyer who does not wanna pay 2006 prices in an ever dropping market, or the seller who is delusional?
These people must not really be that interested in selling, I have to say.
one word for you, R-E-N-T!!!! i totally understand your frustration. i spent a great deal of my time offering lowballs because i knew years ago that this thing was gonna blow. i was laughed at then but since have had 2 sellers come to me with their tails between their legs. imo, homes are still heavily overpriced. the longer you wait the more you'll get for your money. chill out, rent for a year at great rates and you'll get what you want next year! no point in upsetting sellers and getting their backs up. sooner or later the penny will drop.
what you could do is put a wanted ad out. perhaps add what you are looking to spend and let sellers approach you
Saying houses are overpriced is the same as saying cars are overpriced.
It is such a vague statement it really says nothing useful
i agree, but where i'm looking i think they're overpriced. i'm basing my opinion on the fact that many of the places i've been looking at haven't sold in that time. as far as i am concerned, if something doesn't sell within 2-4 months, it's overpriced
Well, from a buyer's perspective, if you thought that home values would continue to decrease that you would be purchasing an asset that had depreciating value, you sure as heck would want to get a steal of a deal, too.
Then folks like the OP should wait until the RE market gets down to "whatever" level they feel comfortable buying in. Sounds to me like just as many buyers are getting "emotional" about RE as well. Chasing the market in any direction isn't any fun.
i agree, but where i'm looking i think they're overpriced. i'm basing my opinion on the fact that many of the places i've been looking at haven't sold in that time. as far as i am concerned, if something doesn't sell within 2-4 months, it's overpriced
I used to think that way as well - until the current economic climate hit. If things get any worse, selling any home (to a home buyer not an investor) in 90 to 120 days will be a miracle. When prices nationwide start apporoaching or falling below what it would take to rebuild that same house (like in MI) we are ALL in trouble.
i agree, but where i'm looking i think they're overpriced. i'm basing my opinion on the fact that many of the places i've been looking at haven't sold in that time. as far as i am concerned, if something doesn't sell within 2-4 months, it's overpriced
But some are selling and you need to look at the prices those are selling for.
Just because you may not be willing to pay that price does not mean nothing is selling at that price.
But some are selling and you need to look at the prices those are selling for.
Just because you may not be willing to pay that price does not mean nothing is selling at that price.
of the hundred lots that i saved into my realtor account 2 years ago, about 10 have sold. another 20-30 have been removed, relisted. i think the wording 'hot cakes' is hardly applicable. when i do a search it's the same old places, always. every now and then something new pops up and once in a blue moon a heavilly discounted lot sells. a month or two after that sale and some sellers wake up and price competitively. then the most heavily discounted of that batch goes and a new round of reality checked sellers joins the party and so on.
like i said in my earlier post, i'm not interested in offending anyone. i'm going to have to live in the neighborhood once i buy. my strategy has therefore changed from 'agressive lowballing' to 'waiting it out'
Funny how it was so easy for demand to drive prices up 30% (or pick your favorite #) in a few years.. past comps took a backseat to what buyers were willing to pay.
Yet, when that demand subsides, the idea of prices dropping 30% is met with horror and denial. "LOOK AT THE PAST COMPS," they say. Pricing your home to meet demand is suddenly out of the question.
Funny how it was so easy for demand to drive prices up 30% (or pick your favorite #) in a few years.. past comps took a backseat to what buyers were willing to pay.
Yet, when that demand subsides, the idea of prices dropping 30% is met with horror and denial. "LOOK AT THE PAST COMPS," they say. Pricing your home to meet demand is suddenly out of the question.
35 years ago I bought Sweetie a wedding band and engagement ring.
She reciprocated with a wedding band.
While I have may have depreciated somewhat, she has soared in value, and I think on balance we are ahead of the game.
The gold did OK too.
Lot in wonderful suburb of Chicago- 290 thousand. 4 bd., 4 bth. craftsman style, 3,800 sq. ft. home- 370 thousand. Beautiful wife and 4 amazing children sitting around the dinner table, in that home decorated for Christmas- PRICELESS. Should I see if Mastercard is interested in making this a commercial? I think it sounds pretty good. Mike, thank you for a beautiful example of true happiness. Merry Christmas and God Bless.
It is hard to say what will happen but...Interestingly I watched a show on History channel night before last that was titled "Crash, Are we headed for a second great depression"...very scary and very informative. Then I watched "60 minutes" last night...according to them & the history channel there is a second wave of subprime morgage deficiencies coming our way that is just as bad as the first (it hasn't hit yet). Also they stated that the stock market is a good indicator were things are going..according to them the stock market is usually ahead of the times (foreshadow of the future). They state that since the stock market came down approx 50%, housing will be following these next 2 years. With this information it makes it seem like the best way to buy a home is to either low ball, by a destressed/relocation property or wait. Good luck in the new way of house searching...times are changing for sure.
The second wave are not subprime.
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