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And what exactly is your interest in keeping a terribly low market? You cannot disagree with me that the market is terrible right now. It is written everywhere. Unless you profit from it. Which, like I said, is good for you.
I have no interest at all. And i think most people would think this is a natural correction of prices after the massive increase that took place.
Thanks, Mike! I have to say your post is one of the best here! You are the only person who asked and answered, "how does a market ever go up?" I appreciate your time.
Kimba the issue with your logic in sellers raising their prices and forcing buyers to pay more, is that there are too many sellers and someone will be more than willing to cut price to get a property sold. ... Price fixing doesn't work in real estate because there will always be people to drop their price that can.
They will drop their prices when they must.
Quote:
Originally Posted by kimba01
I have already agreed that the market will dictate what the prices will be. So be it. I just posed a different view, I have taken my flaming, you have made your point.
Your replies in this topic are flaming??? Dude, your replies in this topic are simply disagreeing with you, politely. You should see real flaming!
Quote:
Originally Posted by kimba01
I did answer that post that was asked once. Go back and read.
I already read all your posts, and frankly they are ... naive. You haven't posted a single workable idea except that in your own mind you think your property is worth more than you can sell it for. Wrong-o! Your property is worth exactly what you can sell it for, nothing less, nothing more.
Quote:
Originally Posted by kimba01
I didn't say that the comps wouldn't dictate my price, I just said it would be nice to see sellers raising their listing prices a bit.
Yeah, sure, all us sellers wish the market would go up. All car owners wish pigeons wouldn't crap on their cars. Alas, if wishes were money we'd all be rich.
Please, Kimba, tell us how you'd evaluate properties if not by current and recent sales. You keep dodging my requests and the requests of others to tell us how you'd accomplish this. You just reply "read what I already said." Well I'll say it. What you said is rubbish. Asking again, how would you determine market prices if not by market performance?
Quote:
Originally Posted by MikeyKid
You should find and call all the owners currently for sale in your area... tax records hopefully. Contact each of them and explain your plan. Maybe they'll all raise their list prices for you. Bingo bango bongo. Done.
That'll be 6%...
<fineprint>I am disclosing that I am not your agent, affiliated with your agent, or in fact not even an agent.
Just noting, you didn't close your HTML <fineprint> tag.
Your replies in this topic are flaming??? Dude, your replies in this topic are simply disagreeing with you, politely. You should see real flaming!
I already read all your posts, and frankly they are ... naive. You haven't posted a single workable idea except that in your own mind you think your property is worth more than you can sell it for. Wrong-o! Your property is worth exactly what you can sell it for, nothing less, nothing more.
Yeah, sure, all us sellers wish the market would go up. All car owners wish pigeons wouldn't crap on their cars. Alas, if wishes were money we'd all be rich.
Please, Kimba, tell us how you'd evaluate properties if not by current and recent sales. You keep dodging my requests and the requests of others to tell us how you'd accomplish this. You just reply "read what I already said." Well I'll say it. What you said is rubbish. Asking again, how would you determine market prices if not by market performance?
Just noting, you didn't close your HTML <fineprint> tag.
Geez, you are a curmudgeon! I thought you said posting here was a waste of your time? Can't help it, huh?
I am certainly glad that my OP provoked all of this discussion. I learned some things, some things I agree with, others I don't. That's my problem. You will never have to worry about it, lucky for you.
There were some comments that were not polite here. If they weren't yours, don't worry about it. I don't really take it personal as I know that happens when someone can't stuff their opinions down your throat. That's ok. I don't mind when people don't agree with my opinions. We are just different with different views. I am completely ok with that.
As far as me being naive...I already admitted that I am not in the business of selling, buying, banking, mortgages...thank God. So, maybe it is naive to have a bit of wishful thinking. I don't care about that. And you are wrong. My property is worth more than I can sell it for, but that is also ok. Because of some greedy companies in the past I have to just deal with it. I will take my lumps with all the other sheeple out there. And I will move on. Like I said, I am in a better place than most in this situation. I feel bad for them. Have you no compassion? I have seen many people I care about affected adversely by this debacle and sometimes it just begins to wear on you...well me, maybe not you. That's ok too. Some of them are already in a better place for it. They went through he** to get there though, by no fault of their own. Life. Just happens. I realize that.
You just got way too serious about a question that was posed to be a thought provoking discussion. I have agreed, disagreed, laughed, rolled my eyes and learned some new things. Lighten up, that is what forums are for!
As far as your question...it wasn't "yours" to begin with and there were not "others", there was one other and I answered it in my "naive" fashion. You choose to consider it rubbish, so be it. Appears to me you would consider anything you don't agree with "rubbish".
BTW, I am not a "Dude", dude. Have a wonderful evening.
... a question that was posed to be a thought provoking discussion.
OP seems to be signing off, but ... she's right, why such reliance on comps? I feel they might drive the wild swings up and down.
During my first house-hunting venture, the utter authority my realtor gave to 'comps' surprised me and seemed illogical.
When prices are swinging up (bubble) : Well, suppose the latest people to buy were uninformed idiots. Why should they set the prices for everyone?
Prices are swinging down (the is the OP's situation): now this goes too far in the opposite direction and that is the OP's dilemma.
Suppose realtors worked instead from an equation I'll call a Value Formula. It could factor in local rents, property taxes, school system rating, local incomes (including unemployment) , supply of homes and mortgage rates and historical trends.
If it sounds weird and wrong to show buyers a Value Formula instead of (or perhaps in addition to) comps, maybe it's because it isn't done. (Is it? No one showed me anything like this.) If showing a Value Formula had always been a traditional part of the process, we might have avoided some swings and bubbles.
People might be educated to ask: how do comps compare to the Value Formula? (and think before they buy!)
Research might show that the average value of a house over time is predicted by the Value Formula. So people might want to look at it when making other financial decisions, such as retirement. The paper value based on current comps might lead people to bad decisions, because of wild swings.
Kimba, you inspired me to go to Wikipedia to search if something like this exists, but I couldn't find it. I did find some words that describe 'a complete reliance on Market Forces'; don't know if they apply here. Value Formula would be the opposite of that. 'Comps' seems to be that.
Why are comps 'king'?
Also, kudos to you for taking your lumps so graciously. I probably would have just given up.
Suppose realtors worked instead from an equation I'll call a Value Formula. It could factor in local rents, property taxes, school system rating, local incomes (including unemployment) , supply of homes and mortgage rates and historical trends.
But those things should be factored in when people decide to buy. So comps should have it baked in already.
But those things should be factored in when people decide to buy. So comps should have it baked in already.
From what I can read on Wiki, that is the 'Chicago School' thinking. The market is rational and can be trusted. Clearly is isn't, witness 2006.
Put another way, in 2006, comps were triple or quadruple the Value Formula.
That's a nice thing for buyers to know, especially if research might show that houses will tend back to the Value Formula at some point.
From what I can read on Wiki, that is the 'Chicago School' thinking. The market is rational and can be trusted. Clearly is isn't, witness 2006.
Put another way, in 2006, comps were triple or quadruple the Value Formula.
That's a nice thing for buyers to know, especially if research might show that houses will tend back to the Value Formula at some point.
A FREE market is rational and can be trusted... A den of thieves giving mortgages to anyone with a pulse and a government encouraging them to do it with guarantees and TBTF bail outs is not the same thing. When there's no risk, there's no order.
fyi - your "Value Formula" is a horrendous idea. Just something else that can be manipulated and skewed by the same criminals who caused the last issue. The smartest people are not the ones making the rules - they're busy figuring out how to use those rules and manipulate them to line their own pockets. They dive right into your formula and it wouldn't be long until we're looking at the next bubble.
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