Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Another explanation for price cuts - widows and widowers looking to downsize now that their spouse is gone.
I know its a bit macabre, but a lot of families have lost parents and such to Covid-19, leaving properties no one wants that have to be sold and monies divided. The longer they sit on the market, the more they cost the Estate.
Ive seen numerous homes, especially farm/homes, that are for sale and showing cuts in price. One I know for sure the husband is gone, and the wife is not old, but too old to maintain the farm alone.
When it comes to alleged renovations, many I see are not much at all. Threw down some new carpet - that a new buyer might not like. Painted any existing brick. I know a lot of DIY shows do that type of thing, but its not something I would be looking to pay for. Put up a few feet of tile or ceiling tin as a new backsplash. Its what I call, "Stupid updates." Crap that any new buyer might be estimating what it will cost to tear out and replace.
The best update any seller can do is paint (white or neutral) - on walls that are not wood, stone or brick. Leave new finishes for the buyer to make.
Let's say it cost me $3000 to $4000 to carpet the whole house, so I decide to add $10,000 to the price of the house. If the house isnt moving, that $10K can come right off, and make anyone who had viewed the listing give it another look.
Last edited by ComeCloser; 07-12-2021 at 04:10 PM..
Starting to see it quite a bit here in Virginia. Houses are starting to sit and even have price cuts.
Feeling very 2008 with people asking a ton, but nothing is moving.
I'm in Virginia too. I've only been watching my neighborhood since I am selling in a year. Prices seem to have settled down and leveled off. I think they rose too high, but then pulled back a little, but they are still higher than this time last year for sure (or 2019). In other words, they reached a point where they went five steps forward, but maybe one step back in pricing. Yes, things took a step back, but we are still four steps forward. To me, at least in my neighborhood, things aren't dropping so much as settling down where they are. And they are still moving. In my neighborhood, they sell usually sell in a few days. The only one that lingered (if you can call it that) was over priced. They listed for $600K when everyone else with similar houses (not fully updated like some) were selling at $550K (these are townhouse). When they reduced to $550K, they put up the sold sign a few days later.
Another explanation for price cuts - widows and widowers looking to downsize now that their spouse is gone.
I know its a bit macabre, but a lot of families have lost parents and such to Covid-19, leaving properties no one wants that have to be sold and monies divided. The longer they sit on the market, the more they cost the Estate.
Ive seen numerous homes, especially farm/homes, that are for sale and showing cuts in price. One I know for sure the husband is gone, and the wife is not old, but too old to maintain the farm alone.
When it comes to alleged renovations, many I see are not much at all. Threw down some new carpet - that a new buyer might not like. Painted any existing brick. I know a lot of DIY shows do that type of thing, but its not something I would be looking to pay for. Put up a few feet of tile or ceiling tin as a new backsplash. Its what I call, "Stupid updates." Crap that any new buyer might be estimating what it will cost to tear out and replace.
The best update any seller can do is paint (white or neutral) - on walls that are not wood, stone or brick. Leave new finishes for the buyer to make.
Let's say it cost me $3000 to $4000 to carpet the whole house, so I decide to add $10,000 to the price of the house. If the house isnt moving, that $10K can come right off, and make anyone who had viewed the listing give it another look.
In this market, if it hasn't sold quick and needs a price cut then it was overpriced to start with!
I'm looking daily, clicking to see what went "pending" and what is still around. I fell in love with a unique lot, house is a teardown BUTTTTTTTTTT the area is very low and floods easily so the house would need to be elevated. It has been on/off the market in the 800K range for a couple years. It pops up at 1.2 last month and now it has been reduced 200K after 30 days. House could be livable as is but it has a great lot with a very dated mediocre homes on it. The seawall work alone could cost 200K+.
My thought, the house isn't really worth much more than the last asking price (800K) and even then it might appraise low. Older couple owns it, lived there for decades. They just hired a dreamer of a realtor instead of someone that is realistic.
They just hired a dreamer of a realtor instead of someone that is realistic.
Have been seeing a lot of this locally. It might explain why we keep seeing so many house cuts.
We have been seeing price increases too, but these are always an agent that tried to start a bidding war with a low listing price and ended up not getting a single offer. Bidding wars have all but stopped here.
Inventory keeps increasing. Houses are sitting longer.
I think a lot of buyers have had enough and decided to sideline.
We're not in a buyer's market by any stretch, but I think some sensibility is starting to return.
Another explanation for price cuts - widows and widowers looking to downsize now that their spouse is gone.
I know its a bit macabre, but a lot of families have lost parents and such to Covid-19, leaving properties no one wants that have to be sold and monies divided. The longer they sit on the market, the more they cost the Estate.
Except they aren't sitting on the market (at least not in South Florida). Let me add my anecdotal evidence to the thread:
Both my elderly parents died earlier this year (not from Covid), one in February and one in May. They had lived in the same house since the 1950s and hadn't done any updates since the early 70s (think olive green kitchen cabinets and pink tiles in the bathrooms.) The house still had cloth (!) electrical wiring throughout and an electrical panel with fuses, so I doubt that it's even insurable in its present state. No central a/c and no attic so no easy way to add it. They only had one window a/c unit for the living room (and this is Miami).
As personal representative (i.e., executor), for the estate, I got the house cleaned out and as ready for sale as possible. I thought my agent was out of her mind when she suggested an asking price that was $100k higher than what I thought the house was worth in its present condition. It went live on the MLS at around 5pm on a Thursday afternoon and we had our first offer faxed to us by 7pm. (Actually, we had received two unsolicited written offers even before the house was listed; I assume based on the probate court documents.) We received several more offers through the weekend and I made my selection on Monday morning.
One other quick anecdote: This was actually the second property that I've sold in the past three months. My wife and I decided to sell our oceanfront condo on Miami Beach earlier this spring, and quickly received multiple offers, including a bidding war between two buyers, one which included an escalation clause. At the time we sold, we had garnered the highest sale price for a non-penthouse unit in our building during the current run-up in prices. But I just noticed that an identical unit to ours just closed late last month for $20k more than we sold for, so prices are still going up. (Or at least they were until the Surfside disaster, which was less than 2 miles up Collins avenue from where our building was. It remains to be seen how that will affect prices in the area.)
Once my parents' house sale closes in two weeks, my wife and I may put our primary SFH residence up for sale as well, so I may be involved in yet a third real estate transaction this year.
I just returned from visiting the Tulsa, OK area. The other evening, I heard on the TV news -- the station was interviewing a local realtor -- that they're seeing buyer "fatigue" and also starting to notice some buyer's remorse among people who have purchased homes for what they now think might've been too much.
In the 55+ town I live in real estate "porn" as some call it is alive and well. Many houses are sold before the sign even goes up (inside banter) or the pending or under contract signs appear very fast.
I understand how supply and demand affects markets. I know interest rates are still low. I'm still not sure why the demand has risen to these heights. Perhaps the better informed can enlighten me as to why demand has been at this level when we are experiencing a pandemic and very uncertain economic times.
Personally I was planning to relocate to be closer to relatives. I needed to do it last year--I am now priced out and p.o. royally. Even if I wasn't, I don't want to wade in the waters of candy a-- greed and a market I don't understand and are wary of.
For now I just say NO. If the market doesn't normalize I will continue to say NO and stay where I am.
Some recent buyers may regret not saying no to these prices in the future. I hope so.
My cousin bought a home in a Boston suburb for 675k (According to Zillow...) and it was listed for a day at $599,990.
The home sold for 322k in 2017.
She 110% feels buyers remorse. The 3 bed 2 baths 2,200sqft home doesn't even have central ac or a garage. Formica countertops too. Redfin estimate puts it at 578k. Yikes.
That would be 111% buyer's remorse. Don't get greedy. Sell for $742,500 and not a penny more!
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
