There is NOT a housing shortage in North Dallas (Murphy: middle-class, income)

[LeagleEagleDFW]

Originally Posted by RonaldusMagnus

This is so off the mark its scary. Truly. If you put your house for sale and u get 40 offers for it and instead of wondering wether you mis priced it, you are happy, then by all means....lol.

Let's try this exercise: We both have very similar houses in very similar areas. You price yours at $400k. I prce mine at $500k. Your ecstatic at the 40 offers for $400k. You HOPE to get a price war to get a higher price. I got 2 real offers at $500k. I'm in contract while your playing 40 offers against one another in the pure hope you'll ever reach the $500k the proper price Could have been set at originally. RE professionals are not in the business of hoping to get 40 offers. That's just silly.

Further, if what you say was true that having an insane number of offers is preferable , then any house in any area can achieve that. Just severely under price the house and watch as the vultures circle it. It's truly amazing how many slept thru the chapter on supply/demand in Eco 101.

You're confusing a high numbers of offers with a home being mis-priced, and further not understanding what I said. If a home isn't priced correctly, it won't receive many, if any, offers. What is happening in D/FW is that correctly priced homes are being fought over by a surplus of buyers. No one is pricing a $500,000 home at $400,000 and hoping to get to $500,000. If anything, people are now overpricing their home somewhat based on all the news stories about the real estate market.

The problem is that there are far too many buyers for not enough houses, thus the large number of offers on CORRECTLY PRICED HOMES. If you overprice your home, it won't get any offers and it will still sit.

[TurtleCreek80]

Originally Posted by Rakin

You can tell a lot about someone by reading their previous posts. I knew you were not talking like a real RE agent but just pretending to spout info with little knowledge.

//www.city-data.com/forum/work-...l#post39736895

Can't rep you again bit I'm slow clapping & high fiving you right now

[TurtleCreek80]

Originally Posted by Rakin

Then you should be in the NYC forum commenting on something you might know about.

Watch out, Rakin's on a roll tonight. Love it!

[RonaldusMagnus]

Originally Posted by EDS_

1. You played the jerk card earlier, embrace it now.
2. Comparing the sale of "sowing machines" (is that a farming implement?) to selling a house in a very hot, tight supply, previously undervalued, sellers market is absurd.
3. So far as the number of offers per se you are simply in a tiny minority of people who think receiving a good number of offers is a bad thing.

You might have a defensible point if Rakin's seller received a large number of offers many well over ask - say half the offers came in at 15/20% over ask.

Lol. Sorry for the typo and thanks for the correction.

Orig point stands. Too many offers on anything indicate priced too low. Too little or no offers indicate priced too high. There's a guy 2 blocks from me w a for sale sign on his house for FOUR years. He's overpriced and everyone except him knows it.

Houses are just another form of asset. If u put a sign on your car "for sale $5k" and your phone rang off the hook all day wouldn't you question the $5k? Of course you would. If your a landlord resting an apt and the floodgates open when you set the rent you would think about raising the rent to properly balance that demand down. I sell my house I expect my realtor to generate demand yes, but if I see the demand is over the top I now question my realtor's pricing.

Most people buy and sell only a couple of houses, if that, in their lifetime. It is not their fault if they get giddy upon receiving too many offers. It's understandable bc its foreign to them. So here's your point as I understand it. A house goes up for sale for $400k. At that price 40 offers come in. But if the price was then raised 15% you need 20 offers at that new price to prove the house wasn't priced correctly? Really? No you don't. You don't win a prize for number of offers.

[TurtleCreek80]

Originally Posted by LeagleEagleDFW

You're confusing a high numbers of offers with a home being mis-priced, and further not understanding what I said. If a home isn't priced correctly, it won't receive many, if any, offers. What is happening in D/FW is that correctly priced homes are being fought over by a surplus of buyers. No one is pricing a $500,000 home at $400,000 and hoping to get to $500,000. If anything, people are now overpricing their home somewhat based on all the news stories about the real estate market.

The problem is that there are far too many buyers for not enough houses, thus the large number of offers on CORRECTLY PRICED HOMES. If you overprice your home, it won't get any offers and it will still sit.

Exactly. And these homes still have to appraise, and we all know the appraisers lag the market. So when the winning $420k offer finds out the home appraised for $395k, he'll have to bring an extra $25k to closing assuming an 80/20 loan. That's do-able for most, and the buyer likely knows the appraisals will catch up within months. It's not like he significantly overpaid. You price said house at $500k and no one is bringing an extra $105k to closing....no one.

[RonaldusMagnus]

Originally Posted by LeagleEagleDFW

You're confusing a high numbers of offers with a home being mis-priced, and further not understanding what I said. If a home isn't priced correctly, it won't receive many, if any, offers. What is happening in D/FW is that correctly priced homes are being fought over by a surplus of buyers. No one is pricing a $500,000 home at $400,000 and hoping to get to $500,000. If anything, people are now overpricing their home somewhat based on all the news stories about the real estate market.

The problem is that there are far too many buyers for not enough houses, thus the large number of offers on CORRECTLY PRICED HOMES. If you overprice your home, it won't get any offers and it will still sit.

The statement simply fails to make sense. Under who's definition is the home priced correctly? Yours? The market says the homes are not priced correctly and must rise to quell the demand. Only one person can buy a house that has 40 offers. So "priced correctly" must by definition mean the winning price out of the 40 offers. Run it to its logical conclusion. At $400k 40 offers. At what price would there be 20 offers? At what price 10? 5? 1?

And if people are overpricing as you say they won't get any offers.

[unknown00]

These thread has gone a little out of control...gotta love the internet forums + freedom of speech = everyone has their own opinion = everyone debates each other thinking they are the correct one

[EDS_]

Originally Posted by RonaldusMagnus

Lol. Sorry for the typo and thanks for the correction.

Orig point stands. Too many offers on anything indicate priced too low. Too little or no offers indicate priced too high. There's a guy 2 blocks from me w a for sale sign on his house for FOUR years. He's overpriced and everyone except him knows it.

Houses are just another form of asset. If u put a sign on your car "for sale $5k" and your phone rang off the hook all day wouldn't you question the $5k? Of course you would. If your a landlord resting an apt and the floodgates open when you set the rent you would think about raising the rent to properly balance that demand down. I sell my house I expect my realtor to generate demand yes, but if I see the demand is over the top I now question my realtor's pricing.

Most people buy and sell only a couple of houses, if that, in their lifetime. It is not their fault if they get giddy upon receiving too many offers. It's understandable bc its foreign to them. So here's your point as I understand it. A house goes up for sale for $400k. At that price 40 offers come in. But if the price was then raised 15% you need 20 offers at that new price to prove the house wasn't priced correctly? Really? No you don't. You don't win a prize for number of offers.

I was just messin' with you on sowing machine thing. I'm a serial typo-offender myself.

I have a friend whose home has been for sale maybe 600 of the last 800 days. It's overpriced by maybe 20/25%. And he'll move the price up as his home appreciates. He may well sell the thing it's super pretty on an awesome lot etc. and someone may fall in love with it.

If I got a bunch of offers on a car I had for sale that were around ask I'd know I had a good car and marketed it well. If I had pro-buyers bidding against each other over it ask I'd know I'd blown the price.

Houses in Dallas and the northern 'burbs are a different deal. The area is growing like gangbusters as people flee the financial hellholes that many other large US cities have become. We literally have people touring nice neighborhoods in busses and limos looking at homes. I've had realtors stop by and ask if I'd consider selling. I get mail from realtors every few days. So do many homeowners around here.

Given all of that plus the known quantity of many thousands of high paying jobs coming and the unknown number too the market here is crazy.


Recap:

Scenario 1 - home for sale around here 40 bids some well below, many right around +/-2% or so a and couple at maybe a couple at 3 or 5% over.........that house is priced right.

Scenario 2 - home for sale around here 40 bids, a couple well below, idiot lowballs always happen, a few at ask, a a bunch well over ask - that = a mis-priced home.

[Rakin]

Originally Posted by EDS_

Scenario 2 - home for sale around here 40 bids, a couple well below, idiot lowballs always happen, a few at ask, a a bunch well over ask - that = a mis-priced home.

Not always. For example we look at Comps that say a home should be priced at $250k but knowing there are very few on the market in Frisco the seller decides to push the price to $275 because of the shortage. House goes on the market priced above market and get's 10-20 offers in 3 days with many cash coming in 10% above. I'm even writing out appraisals as a contingency when there is financing.

There may be zero Comps that supports a $300k price on a $250k house but that's where the buyers push the price.

In todays market, I seldom look back at the Comps but what is pending and on the market the day we are listing a home.
The market is something we must watch daily. It could easily slow tomorrow which would mean our high list price is way over list.

I have actually terminated a listing and we raised it $30k 2 days after it hit the market.
In this crazy market you've got to have someone on top of sales who can make a very educated guess on how high is too high.

Also, we Agents do not price homes. We give the information and experience to our Sellers and let them make the final decision based on their motivation to sell.

[EDS_]

Originally Posted by Rakin

Not always. For example we look at Comps that say a home should be priced at $250k but knowing there are very few on the market in Frisco the seller decides to push the price to $275 because of the shortage. House goes on the market priced above market and get's 10-20 offers in 3 days with many cash coming in 10% above. I'm even writing out appraisals as a contingency when there is financing.

There may be zero Comps that supports a $300k price on a $250k house but that's where the buyers push the price.

In todays market, I seldom look back at the Comps but what is pending and on the market the day we are listing a home.
The market is something we must watch daily. It could easily slow tomorrow which would mean our high list price is way over list.

I have actually terminated a listing and we raised it $30k 2 days after it hit the market.
In this crazy market you've got to have someone on top of sales who can make a very educated guess on how high is too high.

Also, we Agents do not price homes. We give the information and experience to our Sellers and let them make the final decision based on their motivation to sell.

Excellent.