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So tell me, how does one go about determining the "fair market value" of a property, prior to offering?
Do you mean fair market value for you or for your RE agent? Because these are two completely different things!
You see many people are under the mistaken assumption that their RE agent is somehow obligated to look after the buyer's interests. Nothing could be further from the truth! Your RE agent is only out to get you to pay the highest price possible because his/her commission depends on it. Regardless if the RE agent was hired as a "buyers agent". There reallly is no such thing. The RE agent represents him/herself only.
Look at home prices today: most of them are at least 300% overvalued. Even if they came down to half price (as many already have) they'd still be overvalued! The TRUE measure of fair market value is affordability based on salary range. We're FAR from true affordability yet.
Go to ziprealty and look at home price histories. You'll see how many 500K homes have dropped their prices by $100K and still aren't selling! Imagine the poor fool who did buy at the overvalued top only to find their downpayment completely wiped-out in just a single month of dropping prices!.
Look at the NAR spokepeople, who have falsely been calling a 'bottom' to the RE market for over a year now, despite continually sliding home values!
Home buyers need to shake off the herd mentality: their is no longer any need to 'rush' into buying anymore. The House/ATM's have been closed down & the *** is up. Take your time, sit back and save yourself a bundle by just relaxing and watching home prices slowly come back into REAL salary ranges THEN BUY.
Do you mean fair market value for you or for your RE agent? Because these are two completely different things!
You see many people are under the mistaken assumption that their RE agent is somehow obligated to look after the buyer's interests. Nothing could be further from the truth! Your RE agent is only out to get you to pay the highest price possible because his/her commission depends on it. Regardless if the RE agent was hired as a "buyers agent". There reallly is no such thing. The RE agent represents him/herself only.
Look at home prices today: most of them are at least 300% overvalued. Even if they came down to half price (as many already have) they'd still be overvalued! The TRUE measure of fair market value is affordability based on salary range. We're FAR from true affordability yet.
Go to ziprealty and look at home price histories. You'll see how many 500K homes have dropped their prices by $100K and still aren't selling! Imagine the poor fool who did buy at the overvalued top only to find their downpayment completely wiped-out in just a single month of dropping prices!.
Look at the NAR spokepeople, who have falsely been calling a 'bottom' to the RE market for over a year now, despite continually sliding home values!
Home buyers need to shake off the herd mentality: their is no longer any need to 'rush' into buying anymore. The House/ATM's have been closed down & the *** is up. Take your time, sit back and save yourself a bundle by just relaxing and watching home prices slowly come back into REAL salary ranges THEN BUY.
Wow, SurfGod, like totally! Dude, like, can you like, be anymore OFF base? Salary- who's? Get a life!
It would be great if we could respond to a post where we disagree with civility and not childish ridicule. Does anyone believe that this type of behavior is going to help prove your point?
It would be great if we could respond to a post where we disagree with civility and not childish ridicule. Does anyone believe that this type of behavior is going to help prove your point?
Well, if you can make that happen for 48 hours, I'll eat a BIG booger.
Wow, SurfGod, like totally! Dude, like, can you like, be anymore OFF base? Salary- who's? Get a life!
Back in 1610 they said the same thing about buying tulips because that's EXACTLY what bubbles do when they last so long that people lose track of FUNDAMENTALS. People come to believe that there's a 'new reality' in play and that old values & virtues are somehow suddenly obsolete. But FUNDAMENTALS are eternal truths ..hence the name, "FUNDAMENTALS".
Fundamentals tell us you can give free money to deadbeats and allow them to drive up prices indefinitely only so long as the Ponzi Scheme can be kept going. Once it stops the resulting financial house of cards will implode JUST LIKE THE ENTIRE US ECONOMY IS IMPLODING RIGHT NOW.
So don't worry: great homes will soon be within your affordable reach. You may not have a job, savings or a working government but you'll definitely have affordable homes.
I don't know if this quite fits in this thread, but since it is about an overvalued home and how it came to be that way, I'll try it. I posted it in the business forum, but it didn't seem to fit. It's a bit shocking. Look at the slide show.
I also think its a bit scary. After reading this article, I thought, what has happened to my country? How can I trust anything? --and now I am nervous Nellie! I read this article and want to put my money under a mattress and hunker down in my little condo!!
BTW-- I have to give some news--my realtor has called and said a seller's agentt has asked me to lowball! (I previuosly told her and this seller--thanks but no thanks, I can't buy now)
But maybe it's time to be bold (don't go with the herd.)
If the seller's agent wants me to lowball--should I really lowball? Or just semi-lowball? Or should I hunker down in my condo!
Sorry, rambling thread, but so many things to think about.
Do you mean fair market value for you or for your RE agent? Because these are two completely different things!
You see many people are under the mistaken assumption that their RE agent is somehow obligated to look after the buyer's interests. Nothing could be further from the truth! Your RE agent is only out to get you to pay the highest price possible because his/her commission depends on it. Regardless if the RE agent was hired as a "buyers agent". There reallly is no such thing. The RE agent represents him/herself only.
Look at home prices today: most of them are at least 300% overvalued. Even if they came down to half price (as many already have) they'd still be overvalued! The TRUE measure of fair market value is affordability based on salary range. We're FAR from true affordability yet.
Go to ziprealty and look at home price histories. You'll see how many 500K homes have dropped their prices by $100K and still aren't selling! Imagine the poor fool who did buy at the overvalued top only to find their downpayment completely wiped-out in just a single month of dropping prices!.
Look at the NAR spokepeople, who have falsely been calling a 'bottom' to the RE market for over a year now, despite continually sliding home values!
Home buyers need to shake off the herd mentality: their is no longer any need to 'rush' into buying anymore. The House/ATM's have been closed down & the *** is up. Take your time, sit back and save yourself a bundle by just relaxing and watching home prices slowly come back into REAL salary ranges THEN BUY.
Couldn't have said it better....sellers need to wake up as buyers and face reality that their home isn't worth anywhere close to what they think it is.
Last edited by stosh; 01-04-2009 at 08:35 AM..
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