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Don't get too worked up over Tom's advice ModMondays, the post you replied to was about 18 months old.
Is that 6.5% -11% off of origional list, or final list? Its still not much.
My thoughts on this is more along the lines of what Dave Barry's quote was. You're still looking at 5% maybe 10% off of what the list is. most people don't go below that and its almost pointless to enter negotiations unless you're willing to pay at least 90% of the asking.
I'm not saying houses aren't overpriced in some cases by 30%. I'm just saying that no one is going to take 30% less than asking. They'll sit and sit and sit. Prices will get reduced. Someone will post to a RE board saying their house has sat for 18 months and no one will look at it, offer on it etc and I've changed RE agents, etc etc until finnally they'll drop the price to a realistic level, someone will come and offer 10% less, they'll settle on 5% less and we're back to where I started.
The future is anyone's guess. factoring in a 20% drop in price is going to be difficult to do. Were you able to do that?
If you beleive that the closing price, not asking but closing price of transactions today is overpriced by 20% and you have mobility, I'd vote for sitting this out rather than trying to price in a 20% discount from closing prices today.
That 6-11% is the average listing discount from LAST list price....and you think thats not much? See below:
Nassau North Shore discount off-last list price was the highest at 11%. The median sale price there dropped 10.4% to $674,000.....so figure the "list before sale" was about 760k - - thats a savings to the buyer of about $84,000 in this model ($760k @ 11% discount is $675k approx)
Last edited by modmondays; 01-23-2009 at 07:15 PM..
Don't get too worked up over Tom's advice ModMondays, the post you replied to was about 18 months old.
Is that 6.5% -11% off of origional list, or final list? Its still not much.
My thoughts on this is more along the lines of what Dave Barry's quote was. You're still looking at 5% maybe 10% off of what the list is. most people don't go below that and its almost pointless to enter negotiations unless you're willing to pay at least 90% of the asking.
I'm not saying houses aren't overpriced in some cases by 30%. I'm just saying that no one is going to take 30% less than asking. They'll sit and sit and sit. Prices will get reduced. Someone will post to a RE board saying their house has sat for 18 months and no one will look at it, offer on it etc and I've changed RE agents, etc etc until finnally they'll drop the price to a realistic level, someone will come and offer 10% less, they'll settle on 5% less and we're back to where I started.
The future is anyone's guess. factoring in a 20% drop in price is going to be difficult to do. Were you able to do that?
If you beleive that the closing price, not asking but closing price of transactions today is overpriced by 20% and you have mobility, I'd vote for sitting this out rather than trying to price in a 20% discount from closing prices today.
Nassau market as whole showed an average discount of 8% of last list price - - so buyers/sellers are obviously not necessarily settling anymore for a 5% meet-in-the-middle deal.
But what we've been seeing for as long as I can remember is that at least one party is stuck in an emotion-based price mindset. Either the seller is in denial about what his house is really worth to a buyer looking at it from an objective, financially realistic viewpoint; or the buyer is in denial about how much house he "should" be able to get for what he's willing or able to spend.
Sometimes both are in denial but at least in that situation there is very little time wasted in fruitless negotiation.
Welcome to my life.
Buying or Selling a home is a very emotional experience and people do not always act completely rationally.
That is true - - there are bad apples in all industries. That is why the most successful are the ones that educate themselves to weed through the B.S.
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