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Again, IMHO that's purely statistics - important though they are. I use them as well. But there is also the "neighborhood knowledge" that can impact price, sometimes significantly. I agree about tons of information out there, but interpretation is subjective.
Shall we "agree to disagree"?
Wish I knew . Here are some of my conjectures:
1) seller has a price in mind and won't go below that; if agent balks, seller walks... to another agent who will accept that price (happened to me a few times recently)
2) agent will quote a higher price just to get the listing
3) agent is not familiar with the neighborhood and uses "statistics only"
4) listing has been around for a long time and price reductions haven't caught up with reality yet
5) if recent purchase, seller can't come to grips with "no equity" or worse, "negative equity" and "wants to try anyway".
Also, sometimes "wrong" price can be in the eyes of the beholder. As buyers, we all have "triggers" that make us like one house and reject another--and they're different for all of us.
I generally agree with your above assessments. All the more reason why buyers need to be engaged.
Once a potential buyer sees a house they really like, they should (themselves) crunch all of the statistical info and current list/sales records in the neighboring area (making sure they are comparing "apples-to-apples"). Then, they should go to any open houses they can (again in the same vicinity) and only go to the ones in the same relative price range. Then - - they can compare all conditions, gauge the local market reality - - and make the offer based on a real understanding. Its fun to do and it is the minimal amount of effort one should make if they are putting hundereds of thousands of dollars on the line in a bad recession.
I generally agree with your above assessments. All the more reason why buyers need to be engaged.
Once a potential buyer sees a house they really like, they should (themselves) crunch all of the statistical info and current list/sales records in the neighboring area (making sure they are comparing "apples-to-apples"). Then, they should go to any open houses they can (again in the same vicinity) and only go to the ones in the same relative price range. Then - - they can compare all conditions, gauge the local market reality - - and make the offer based on a real understanding. Its fun to do and it is the minimal amount of effort one should make if they are putting hundereds of thousands of dollars on the line in a bad recession.
I love "educated buyers" like you! However, at this point, you're still in the minority...
Some people are intimidated by number crunching and others don't have or make the time to do what you do and/or feel it's the Realtor's job. This of course leads to another topic: ethics...
1) seller has a price in mind and won't go below that; if agent balks, seller walks... to another agent who will accept that price (happened to me a few times recently)
2) agent will quote a higher price just to get the listing
3) agent is not familiar with the neighborhood and uses "statistics only"
4) listing has been around for a long time and price reductions haven't caught up with reality yet
I can attest to those being strong probabilities: Someone I know has had her house on the market for ELEVEN MONTHS because of factors 1, 2, and 4! (1) She had a listing price in mind in February and balked at the first agent's honest and realistic assessment of what it should start at (which was a good 50K below what the seller's number was), and walked.... straight into the arms of (2) another agent who was happy to enthuse about the overly high price to get the listing. Seller is now on her second agent after the 6-month listing expired with no offers, but (4) has been chasing the market down for 10 months and is only now, THIS month, at about $10K striking distance of what the house might reasonably sell for to someone who doesn't mind the updating that will be needed or can live with it as is.
The sad part is that the taxes (almost 15K for a significantly dated 1960s house, not even a pool, and only a 1-car garage!) should have been grieved from the beginning and only now, eleven months down the road, is that being done.
The seller and I used to be friends, in fact, until about six months ago when she asked me to tell her honestly why I thought the house wasn't getting any offers. I told her honestly that the house was just not worth what she has been insisting on asking for it, and that the first agent (who she says "insulted" her with what was then a fair and realistic listing price suggestion) had been right on. I was then told that I was being 'nasty and snippy'. So much for honesty. ;-)
btw, the listing price as of today is almost $110,000 less than what my ex-friend insisted the house be listed for 11 months ago.
The sad part is that the taxes (almost 15K for a significantly dated 1960s house, not even a pool, and only a 1-car garage!) should have been grieved from the beginning and only now, eleven months down the road, is that being done.
So one year's worth of over-taxation has added to the "undesirability" of your ex-friend's property. As we all know, taxes are an important issue on LI and make up a big chunk of our monthly mortgage payment
Quote:
Originally Posted by totallyfrazzled
btw, the listing price as of today is almost $110,000 less than what my ex-friend insisted the house be listed for 11 months ago.
Do you think your ex-friend learned from this lesson? Or prefers to lay the blame on others?
Elke, I'm honestly not sure. Obviously, six months ago she was laying the blame on everything EXCEPT price and taxes (since they weren't being grieved). At least now the house is within a price range that people will probably look at it with the mindset of making an offer (whereas before, the asking price wasn't even close). IMO it will finally sell for 15-20K less than where it is now. A buyer who's new to the market and didn't see the pricings from the prior listing is her best bet.
But honestly I think most buyers will look at the current taxes and wince, even though the listing now says the taxes are being grieved. A smart buyer will look at it and say "get back to me when the taxes ARE lowered and tell me how much" Many buyers will simply just not look at it until they know for sure what the taxes will be. IMHO they aren't going to get any offers at all until the grievance process is completed and nowadays with so many people doing that, who knows how long it will take? Definitely this second listing term (assuming it's for 6 months) will expire beforehand. I'm curious to see whether she keeps the same agent (this second one) or goes to yet another. If she switches agents, perhaps she's still blaming the market or the marketing rather than the real culprits (pricing and taxes).
Question: if the taxes are grieved and lowered - - are the school taxes lowered by some percentage as well?
North Shore Nassau is ridiculous. School taxes in most areas make up 80% of the total tax bill and adds another $1000+/month on top of the mortgage for many of the homes - - if not more. So even if prop taxes are grieved and lowered, the total monthly tax bill is still fairly astonishing.......
Question: if the taxes are grieved and lowered - - are the school taxes lowered by some percentage as well?
North Shore Nassau is ridiculous. School taxes in most areas make up 80% of the total tax bill and adds another $1000+/month on top of the mortgage for many of the homes - - if not more. So even if prop taxes are grieved and lowered, the total monthly tax bill is still fairly astonishing.......
When taxes are grieved successfully, the overall assessment is lowered.
Tax rates for everything, school, town, highway, police, etc., etc., are multiplied by the new assessment. Result: everything is lowered proportionately.
When taxes are grieved successfully, the overall assessment is lowered.
Tax rates for everything, school, town, highway, police, etc., etc., are multiplied by the new assessment. Result: everything is lowered proportionately.
So the simple answer to your question: Yes!
Best news of the day - - thanks!
So as a follow-up - - is there any "anecdotal" sort of evidence currently that shows a percentage of how many win/lose their cases?
(We are currently looking at a "grandma's teardown" with great bones and renovation appeal - - but the taxes are too high. Based on their current assessment, I cant even believe it is assessed that high...thus the query)
If it's a teardown (meaning that if you buy it and renovate more than a certain percentage of it) the current assessment won't be relevant at all. Depending on the town it's in, the renovated house may end up being taxed as new construction (ouch!). That happened to a former neighbor of mine who thought that if he left one wall standing it would be considered a Renovation rather than New Construction. Halfway into the project he found out differently. Almost had a coronary when he got his new final tax bill.
If it's a teardown (meaning that if you buy it and renovate more than a certain percentage of it) the current assessment won't be relevant at all. Depending on the town it's in, the renovated house may end up being taxed as new construction (ouch!). That happened to a former neighbor of mine who thought that if he left one wall standing it would be considered a Renovation rather than New Construction. Halfway into the project he found out differently. Almost had a coronary when he got his new final tax bill.
Would re-roofing, painting and siding be considered as "new construction" you think? The rest is interior renovations: new flooring/kitchen, etc
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. Here are some of my conjectures: 
