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...this year, it just sold for 15% under my "unrealistic lowball."
Point? Not everyone is trying to "steal" your house just because they're well below your list price. Their offer might be what your house is actually worth. Or even more.
Not getting any offers should be your first clue. Buyers are still buying. But not if it's overpriced.
I wonder how many price cuts they did in the interim? If the place you had in mind fits the trends that I still see, I would bet they cut their asking price until it was within about 85 - 90% of what they settled for...
....factor in carring costs, lost opportunity costs (.5% CD!), maintenance costs, etc and they probably wish today that they hadn't dismissed your 'lowball', insulting offer....
They supposedly rented it for a year, but it didn't look like anyone was living there. Came back on at a lower list and yeah, the ultimate sale price was 87% of their "final" list. That final list took a couple of years to get to, though. Talk about chasing the market down.
Carrying costs in this area aren't low because of high taxes. If it was vacant, they were carrying a mortgage on it, too.
Just tired of being labeled "unreasonable" by sellers who can't see the writing on the wall.
The kicker? This just set the new sales comp for the neighborhood.
I think when sellers hear the market will "recover" in a few years, they think that means prices will. In our area, a few years is when prices might stop falling. Those 2006 prices are long gone and I'll be gray or dead by the time they come back.
Yep, it is frustrating, but the mindset is hard to overcome...
I have been warning many folks that the changes that have occurred because of the collapse of bubblious pieces will take very long time to sink in with some folks.
When I tell folks that you can now buy a very nice and habitable home for less than the raw land was selling for just a short time ago some people don't understand that the net effect is that both buyers and sellers have major gulf when it comes to "meeting of the minds".
Making the "low ball offer" too often results in the sellers digging in their heels.
In the broad Chicago region making an offer that is more than 18% or so below ask so infrequently results is a sale that it just makes more sense to wait until the sellers to drop price to where you can feel better abbot making an offer that won't trigger feelings of insult / outrage...
Unless the sellers are really really really really moments away from being foreclosed they just do not care about carrying cost. The money that flies out the door from doesn't matter until the door is shut behind you and the locks are changed.
Heck, if folks are stuck in "sell at this floor or go the short sale route" it may take some something awful to happen before they realize a short sale is better than burning through every last cent...
Quote:
Originally Posted by cohdane
They supposedly rented it for a year, but it didn't look like anyone was living there. Came back on at a lower list and yeah, the ultimate sale price was 87% of their "final" list. That final list took a couple of years to get to, though. Talk about chasing the market down.
Carrying costs in this area aren't low because of high taxes. If it was vacant, they were carrying a mortgage on it, too.
Just tired of being labeled "unreasonable" by sellers who can't see the writing on the wall.
The kicker? This just set the new sales comp for the neighborhood.
I think when sellers hear the market will "recover" in a few years, they think that means prices will. In our area, a few years is when prices might stop falling. Those 2006 prices are long gone and I'll be gray or dead by the time they come back.
They supposedly rented it for a year, but it didn't look like anyone was living there. Came back on at a lower list and yeah, the ultimate sale price was 87% of their "final" list. That final list took a couple of years to get to, though. Talk about chasing the market down.
Carrying costs in this area aren't low because of high taxes. If it was vacant, they were carrying a mortgage on it, too.
Just tired of being labeled "unreasonable" by sellers who can't see the writing on the wall.
The kicker? This just set the new sales comp for the neighborhood.
I think when sellers hear the market will "recover" in a few years, they think that means prices will. In our area, a few years is when prices might stop falling. Those 2006 prices are long gone and I'll be gray or dead by the time they come back.
"I'm not going to give it away!"
Carry costs almost never enter into the equation because of the irrationality of chasing the market down... or the best of the best - "getting insulted" and taking it off the market until "the recovery". lol
Meanwhile; their un(der)employed, underwater, and/or living off credit card neighbors are starting to fall behind and it won't be long until the distressed comps start piling up.
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Yep, it is frustrating, but the mindset is hard to overcome...
