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[quote=theS5;10707514]It is good to hear that you got what you needed out of your home. Anecdotes are great, but don't necessarily reflect the true market. I see countless homes on the market priced 10-20% above peak prices. Unless a buyer is in a narcotic haze, these homes will not sell.
My point was, not all sellers are as clueless about the value of our homes as the OP tried to imply, and his assertion that all homes are worth less than we think they are is a broad generalization that serves no real purpose
America has too much invested emotionally in their homes. Houses are the only asset I can think of where it has a market value and an emotional value, and trying to separate the two when it's time to part with the asset leads to poor decision making.
You nailed it.
Sellers tend to view their homes as unique products....nothing quite like it, anywhere....emotion. When they do this, it rationalizes the perception that the market will pay what the sellers need, want, owe....
Buyers tend to view homes for sale as a commodity.....albeit an emotional commodity. If they can't buy this house, then by golly, they will turn around and buy that house or maybe they will just wait.
When there is too much inventory (supply) and insufficient buyer interest (demand) the value of unsold inventory declines.
Both buyers and sellers often have entitlement issues. Many sellers believe what they paid, need, want out of the sale of their home, matters. Many buyers believe what they need, want and can afford to pay, matters.
Individual buyers and sellers have no control over supply and demand, other than their own reactions to the market.
My home was worth more than I thought it was.
Sold for 99% of list. I was expecting 95%
???? If it sold less then the list price how is it worth more than what you thought it was? You obviously felt that the listing price was fair, otherwise you would have never listed it at that price. Sold less than the value YOU put on it.
???? If it sold less then the list price how is it worth more than what you thought it was? You obviously felt that the listing price was fair, otherwise you would have never listed it at that price. Sold less than the value YOU put on it.
It appears that he listed it allowing the buyer to feel that they got a "deal" because buyers these days seem to think that they're owed one and thus sellers are pricing accordingly (knowing that no matter WHAT the list price is, even if it's below market value, a lot of buyers are going to try to argue them down on it on the theory that they're "owed" it and that "sellers think their houses are worth more than they are".
He thought the buyer would want to argue him down to 95% of list, and was pleasantly surprised when the buyer he got felt satisfied with arguing him down to only 99%. Which means he had a reasonable buyer (not something seller's can count on right now) and he priced the house very well in the first place.
I try to get my sellers and buyers to make their decisions about what a house is worth based on actual sold comps, rather than what they think they're "owed", as that's the only reasonable way to do it. But some of them simply can't get past the emotional response and think that the other side is the one that's delusional.
It appears that he listed it allowing the buyer to feel that they got a "deal" because buyers these days seem to think that they're owed one and thus sellers are pricing accordingly (knowing that no matter WHAT the list price is, even if it's below market value, a lot of buyers are going to try to argue them down on it on the theory that they're "owed" it and that "sellers think their houses are worth more than they are".
He thought the buyer would want to argue him down to 95% of list, and was pleasantly surprised when the buyer he got felt satisfied with arguing him down to only 99%. Which means he had a reasonable buyer (not something seller's can count on right now) and he priced the house very well in the first place.
I try to get my sellers and buyers to make their decisions about what a house is worth based on actual sold comps, rather than what they think they're "owed", as that's the only reasonable way to do it. But some of them simply can't get past the emotional response and think that the other side is the one that's delusional.
Thank you, Professor, for another installation of RE 101.
Thank you, Professor, for another installation of RE 101.
Agreed.
Our house? Reaonably to higher end priced for market.
BUT we knew, awesome location, awesome house.
Long time on market (whilst "robustly" priced).
Eventually, seller dropped listing price - because they were under a little pressure to sell (info actually volunteered by THEIR agent - how unprofessional???????).
We majorly lowballed.
They "stuck" - nope, we can't accept this. Nooooooooo way.
We sat tight, said nothing.
Then they dropped a tiny bit.
We raised slightly.
They dropped slightly.
We walked away from deal for 3 weeks.
They dropped a lot more.
We raised slightly.
Bottom line? We agreed.
And, a year and a half down the line, in a heavily declining market, our house could be today be sensibly listed at the price we paid for it.
All without any input from a "buyer's agent".
We have two friends in our town who both used "buyer's agents" to get them (apparently) "the best deal" - both now are underwater less than a year on.
???? If it sold less then the list price how is it worth more than what you thought it was? You obviously felt that the listing price was fair, otherwise you would have never listed it at that price. Sold less than the value YOU put on it.
I thought everyone built a little bit of wiggle room into their listing price with the expectation that many buyers won't buy without 'negotiating' the price. I thought that haggling over the price and the details of the contract was just standard practice in this market. I don't know of many people who buy cars or houses at full list price anymore.
I thought everyone built a little bit of wiggle room into their listing price with the expectation that many buyers won't buy without 'negotiating' the price. I thought that haggling over the price and the details of the contract was just standard practice in this market. I don't know of many people who buy cars or houses at full list price anymore.
Where I live it's normal to have people price their house 50 thousand or more over what they think it is worth! We didn't do that and it hasn't made a darn bit of difference. NO ONE is buying houses here in the 5 or 6 hundred thousands. Of course, I live around Pittsburgh, not much of a hot bed of real estate- ever.....
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