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Old 05-24-2008, 02:27 AM
 
Location: Los Angeles Area
3,306 posts, read 4,162,052 times
Reputation: 592

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I just read through a bunch of posts here and it seems some people are having trouble with this very simple idea:

If nobody is interested in your house its because you are asking too much.

You can sell your house within weeks if you price it right.
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Old 05-24-2008, 04:54 AM
 
60 posts, read 310,109 times
Reputation: 54
You may be on to something, I live in Wilmington De and people continuously compare the price they are selling the house for to the appraised value of the house in 2005-2006. It is insane and so frustrating. I do not have to move, just trying to get out of the city. I know there are buyers, nice house priced right sold in three days. You want to sell, take 10-15% off the asking price today, do not nickel and dime us to death. I compare real estate around here to the "make me move" feature on Zillow. If they cannot sell they take their house off the market, ARRRRRGH!!!
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Old 05-24-2008, 06:52 AM
 
Location: GA
2,791 posts, read 10,820,163 times
Reputation: 1181
While I'm sure many sellers are overpriced, not all are. Buyers shouldn't assume every house is overpriced. If they think that way, then maybe they should be looking in a lower price range. Anyone can sell a house in a day with a ridiculously low price.
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Old 05-24-2008, 08:43 AM
 
Location: Broward County
2,517 posts, read 11,063,123 times
Reputation: 1391
prices are declining and will continue. Until they are truly afforable where people making 75K a year can truly afford it.....then and only then will they start selling.

Sellers can be greedy and keep their prices high....go ahead. All the foreclosures around you will just PLUMMET the value of your home. It's already happening in many parts of the U.S.
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Old 05-24-2008, 11:32 AM
 
60 posts, read 310,109 times
Reputation: 54
Quote:
Originally Posted by brookdaleresident View Post
While I'm sure many sellers are overpriced, not all are. Buyers shouldn't assume every house is overpriced. If they think that way, then maybe they should be looking in a lower price range. Anyone can sell a house in a day with a ridiculously low price.
The area to which I refer has seen an increase in home prices over the last ten years in excess of 50+%, time to come back to reality.
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Old 05-24-2008, 12:19 PM
 
Location: DFW
40,967 posts, read 49,289,310 times
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Not entirely true about lowering the price. We have a home listed in an area that has ton of affordable homes under $150k & ours is priced to sell cheap.

This is a part of town where the type of people don't understand good credit or money down. With the tightening of credit requirements, the problem is finding a qualified buyer.

IT doesn't matter the price of the home if no one can get qualified.
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Old 05-24-2008, 01:19 PM
 
Location: Broward County
2,517 posts, read 11,063,123 times
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Quote:
Originally Posted by Rakin View Post
Not entirely true about lowering the price. We have a home listed in an area that has ton of affordable homes under $150k & ours is priced to sell cheap.

This is a part of town where the type of people don't understand good credit or money down. With the tightening of credit requirements, the problem is finding a qualified buyer.

IT doesn't matter the price of the home if no one can get qualified.

but the more you lower your price, the more the chances are that they CAN get qualified.
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Old 05-24-2008, 01:54 PM
 
Location: GA
2,791 posts, read 10,820,163 times
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Quote:
Originally Posted by heydade View Post
but the more you lower your price, the more the chances are that they CAN get qualified.
So now sellers should lower prices so people with bad credit and no down payments can buy them?
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Old 05-24-2008, 03:28 PM
 
Location: Norfolk, VA
1,036 posts, read 3,973,145 times
Reputation: 515
Quote:
Originally Posted by Rakin View Post
Not entirely true about lowering the price. We have a home listed in an area that has ton of affordable homes under $150k & ours is priced to sell cheap.

This is a part of town where the type of people don't understand good credit or money down. With the tightening of credit requirements, the problem is finding a qualified buyer.

IT doesn't matter the price of the home if no one can get qualified.

Have you considered offering DPA programs or other incentives instead of lowering the price?

You identified the problem already.... price is not the issue, getting people to qualify is.

One opyion is to drop the price of a home from $150,000 to $145,000 but the difference in a mortgage or qualifications that borrowers need is minimal. So you are left in the same boat, chasing after the same pool of buyers that qualify. They can buy your home or any of the others doing the same thing.

The second option is to leave the price at $150,000 but offer a 3% ($4500) down payment assistance fund to qualified buyers. The seller nets $500 more under this scenario AND they open up the pool of potential buyers so that those who can qualify for FHA but can not contribute the required 3% can now purchase your home.

People have gotten so caught up in PRICE that they forget that what really sells is VALUE. Lowering price is one way to add value, but not the only one (or the best one in many cases).


Same with the people that got 2-year ARMs because it had great low rates (for 2 years at least) or interest-only, option ARMs because of price alone. What they forgot was the value of having a fixed, stable rate and a monthly payment that was sustainable.

You can lower a price all you want, but then what you attract is bargain hunters looking to scoop up a deal. That is one approach to real estate, the other requires more work and a lender that knows the business.... but in the end it is far more beneficial to clients and profitable for the sellers, Realtors and lenders involved.
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Old 05-24-2008, 04:57 PM
 
Location: Los Angeles Area
3,306 posts, read 4,162,052 times
Reputation: 592
Quote:
Buyers shouldn't assume every house is overpriced. If they think that way, then maybe they should be looking in a lower price range. Anyone can sell a house in a day with a ridiculously low price.
Personally I think everything is overpriced in my area (southern California), but that wasn't my point. As a seller if your house is not selling the reason for that is usually the price. This is just supply and demand, I was able to help my mom sell her house in 2 weeks here in Southern California. It sold fast because it was priced right, yet she still made a lot of money on the sale. Although she would've made at least 150k more if she sold 1-2 years ago, it took a lot of conversations to get her to consider a low initial list price.

Quote:
You identified the problem already.... price is not the issue, getting people to qualify is.
I have to say this comment is pretty absurd. Again supply and demand. If you increase demand by giving people loans that shouldn't have loans (like a couple years ago) that will have the effect of raising prices. Now that the lender standards are more normal (still looser than they were 10 years ago!) the demand has decrease, this causes prices to go down.

So a seller has a few options, they can hope that lenders start being stupid again (very unlikely) or they need to lower their price to reflect the new realities in the market place.

Really, its just supply and demand.

Quote:
So now sellers should lower prices so people with bad credit and no down payments can buy them?
No they should lower their price if they actually want to sell their house.
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