Sellers asking more than peak prices...why? (appraised, agent, investment)
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1. Was somewhere between 2005-2007 the "peak" for your market?
2. If you bought in that time frame and are now trying to sell, why is your home priced above the "peak"?
Honestly trying to get some insight here. I keep seeing listings that are priced over the peak-- many without any upgrades since the last purchase. They sit on the market forever. Trying to figure out why sellers think anyone would pay over "peak" when we're two years and many percentage points away from it.
I am not exactly sure when our peak was but I think 2004-2007. We bought in December 2003 for $386,000. We currently have our home listed at $389,900. Why? Because we finished the basement and that added another 1000 sq feet. But, we are finding that it really does not matter and are about to drop our price to well below what we paid for it. We don't care anymore, we just want to be done and move on.
Well Cohdane the folks that I know personally that are selling above "peak" is due to the payoff amounts on their mortgages. And contrary to some they are not trying to pay for college, trips or new autos they just want to break even after fees ect.
I bought 5 yrs before the peak, totally redid the place and am trying to sell. If I would of sold in 2005 I could have gotten 250-300k more. Would of, should of & could have! Priced below most, excluding forclosures and no lookers.
This is very common in my area. There are plenty of homes listed at double digit annual appreciation factors, since 2005, meaning they are 20-35% out of the ballpark.
So many sellers believe that somehow, their home is imune to overall market conditions and believe that what they need or want out of a sale, determines the outcome. Well in a way it does. The home joins the growing ranks of overpriced stale donuts that will eventually sell for substantially less than they could have, had they been right priced, upon the initial listing. In other words, they become a part of the problem, not the solution.
All things considered, which agent do you think is going to get the listing?
The one who sustains the owner's fantasy or the one who gives the owners the facts of the market and suggests a price 25% less than what the sellers had in mind? No amount of marketing can overcome a bad price, in any market.
Then there are the sellers who made improvements and just want to break even. Their pain in very real as they come to terms with having to make a gift of those improvements and then some, just to get sold.
I purchased in 2005 for 425K...just sold for 510K but I also did alot of upgrading.. it was new const. when I bought it...appraised at 459K and I put a good 80 to 100K into it..pool, landscaping...kitchen upgrades, etc. I did alot of the upgrades myself which saved me thousands so when all is said and done... if I didn't have to pay the realtors, I would have broken even - or at least got my initial investment monies back.
Well Cohdane the folks that I know personally that are selling above "peak" is due to the payoff amounts on their mortgages. And contrary to some they are not trying to pay for college, trips or new autos they just want to break even after fees ect.
I bought 5 yrs before the peak, totally redid the place and am trying to sell. If I would of sold in 2005 I could have gotten 250-300k more. Would of, should of & could have! Priced below most, excluding forclosures and no lookers.
Agreed! I bought my home Dec 2003. If I sold during peak times, I could've gotten $275K, now I'm lucky to get the $225K I'm asking for it.
There is a house in my area FSBO which just got listed with a Realtor. It is a rehabbed home. Nice inside but fairly cramped in space and only 2 bedrooms. I have no idea why or how this guy came up with his price but he is asking close to $400k. Which is not only above 99% of all other listings in the area but is only a 2 bedroom house. It is insane. The house seriously is worth upper $200's at best. I plan to just watch this house sit vacant cause NO ONE in their right mind would buy this house in this market for that price. 2 blocks away a house is listed for LESS and is also a rehab with 4 bedrooms & an extra bath. WTF? I think this guy go in over his head with renovations and is not accepting that he will be losing a LOT of money on this deal.
Location: Danbury CT covering all of Fairfield County
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Sometimes because they didn't put much money down for their mortgage & need to sell for near that amount so they won't or have to bring limited money to the closing table.
GREAT QUESTION
We looked at a home that sold december 2007 for 215k and was listed as a range price 195k-225k
TODAY that same home was on the market for 285k? My question is how did they feel theres had increased 30% while other homes had lost 15-25% ?
Thats just crazy, no improvements at all....
Location was [Tucson]
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