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Why aren't some sellers lowing their prices! What is really funny is the fact that these home prices were phantom prices....these homes were never worth the price to begin with. If you are out there purchasing a home now....especially with sellers who are not dropping their prices you must be an idiot. Pardon me...don't mean to be rude but I crack up when I look on NJ Tax Records Search or www.Propertyshark.com or www.NJ.com/new/bythenumbers (http://www.NJ.com/new/bythenumbers - broken link) and type in the home sellers address and realize that these homes went out of control. Now I know I am no real estate expert but home values are supposted to rise with job raises about 3% to 6% every year. A home depending on what has been updated (some sellers didn't even put any updating/money into the home) should raise $100,000 to $150,000 every 10 years. People bought in 1998 for $220,000 and expect to get $520,000....ha ha ha. Thats a $300,000 phantom overprice. So if this is the case within 10 years us new home buyers with be able to get $820,000+! Be for real! No one has that kind of money around here anymore....especially with inflation and the greed in this area. These sellers are not moving...expecting to make all this money and leave us new home owners with a problem. Oh and as far as making an offer after getting comparibles in the neighborhood....those are also phantom comparisons...those prices were over inflated also. Low ball whatever you do to make sure you get a price that will not depreciate any time soon.
Please whatever you do...... do your research and don't get taken advantage of.
Mine is for sale for less than it is even assessed (sp?) for my taxes.
I'm now not getting anyone to look simply because I have made it a requirement to be preapproved for a mortgage before I rearrange my life to show the house.
Trust me, the buyers are just as greedy as some of these sellers. They want you to give them the houses.
I understand what you both are saying completely. I am a real estate agent and have sellers all the time telling me that they are not going to give their home away and buyers saying just write up this offer (obviously way to low) to see if they'll take. Autumn said it best in that you should "do your research." Recongnize a good deal on a home for sale when you see it and don't over price it and wonder why it isn't selling. Comparables are the best way to do reserch and if your agent is not giving them to you they are not doing they're job. I always present them to both my buyers and sellers to give them as much info as possible so they are aware of everything going in. Jerseyt719 a pre-approval is a excellent idea but, unless you have a real high end home I might think about showing it without a pre-approval but definetly require it when they are making an offer
Bought in 1996 for $119K. Sold in 2005 for $311K. Had a three-way bid war that would have gone higher but I called an end to it because I wasn't going to lose a deal over greed if it didn't appraise. (It easily did, but again I'm not greedy.)
Worth now? Lucky if they get $280K for it, probably less.
Do I feel guilty? Not at all. That was what the market bore at the time.
By the way, I sold it FSBO first day I put out the for sale sign.
Also, keep in mind, that unless someone HAS to sell quick they are not going to lose money on their house on purpose. If I bought my house for $500k and I was not in Dire circumstances there is no way im going to take less than $500k for it now. In many cases its sheaper to hold onto the house until prices start comming up again than it is to sell it for a HUGE loss.
Certainly one key to doing anything in the real estate business is to do your homework in general. If a property is actually worth what the owner is looking for, then I think it's fine to go ahead and make an offer that is both fair AND one you can afford. Let's not forget how many people have gotten stuck with mortgages that were way beyond their actual means. And before you put your signature on anything, you should definitely invest in a NJ home inspector [mod] smells like advertising from a new poster [/mod]. It may cost a little extra to start with, but it's worth it in the long run.
Well Jerseyt719 if your home was assessed in the last couple of years that also is a phantom assessment. That is why there are so many people trying to have their homes reassessed & there taxes readjusted...there homes were over assessed during the big housing boom. Sad that some of these towns are making a killing on over inflated home/tax prices. Sorry
I agree that you should have no remorse or regret.
But, in today's market, the shoe is on the other foot and buyers should feel no remorse for offering 5-10% below asking price on a, currently, well priced home.
It might upset the seller, but a few years ago the sellers were pitting buyers against each other to get top dollar. The chickens have come home to roost.
Quote:
Originally Posted by annerk
Bought in 1996 for $119K. Sold in 2005 for $311K. Had a three-way bid war that would have gone higher but I called an end to it because I wasn't going to lose a deal over greed if it didn't appraise. (It easily did, but again I'm not greedy.)
Worth now? Lucky if they get $280K for it, probably less.
Do I feel guilty? Not at all. That was what the market bore at the time.
By the way, I sold it FSBO first day I put out the for sale sign.
The discount on homes (% difference between final asking and selling prices) remains at 96-97%. For example, a house listed for $150 originally, then lowered the price to $100 and sold for $97K would sell at 97%. The original $150K is irrelevant in this equation.
This shows that those who do sell are realistic, and those who buy recognize a well-priced house when they see it.
Of course you'll see a few houses where there's a huge price break, but most sell near asking price... even now.
Compare that to the late 1980s, when the discounts ran at 8-10%... the $100K house would sell for $90K.
The main difference is better educated buyers and sellers... and better Realtors then in the late 1980s.
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