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Price does not "replace" location by any stretch of the imagination.
"Price fixes all deficiencies" is still true, and still very true if the location is deficient.
A great location will always have more value than a similar home in an incurably deficient location.
There are so many other factors. Location encompasses schools, shopping, accessability to highways, utilities,flood zones, commercial businesses,etc. No matter the price if these things are not what you want or need then the price does not matter.
There are so many other factors. Location encompasses schools, shopping, accessability to highways, utilities,flood zones, commercial businesses,etc. No matter the price if these things are not what you want or need then the price does not matter.
The area I'm in has top schools, shopping, highways, green space, beaches, etc. Average days-on-market is 240+. With 14+ months of inventory, PLENTY of lovely homes to choose from, yet they sit unsold.
PRICE, PRICE, PRICE.
I agree with the OP for my market. Doesn't matter how "nice" your area is, if the prices are bubble prices, potential buyers will stay put or rent.
Picture your dream home. Now picture it priced at 150% of current market value in a declining market. Still want to buy it? Even if you can afford it?
Price is certainly what is getting homes sold but they have to have location.
Otherwise, we would all be rushing to buy $15,000 mansions in Detroit.
You have to have BOTH price and location in order to sell.
Cohdane,
Are you seeing any price reductions yet in the North Shore in Chicago? Prices seem to be holding fairly steady to slightly declining but nothing is moving. Probably, north shore folks can afford to wait unlike many sellers, though I do expect you will find many great deals in the next year or so as even areas such as Winnetka and Highland Park experience increased foreclosures as more and more people lose their jobs and are unable to meet their mortgage obligations.
Price is certainly what is getting homes sold but they have to have location.
Otherwise, we would all be rushing to buy $15,000 mansions in Detroit.
You have to have BOTH price and location in order to sell.
This is so true. If I were buying now, my search criteria would be no different than in the past. Location first, price next!!! With that being said, in this market I would not go above my price range and expect to find "delusional sellers" to "lowball".
Looking at it from the seller's perspective, if I were someone who bought my condo in early 2007 for $500K, I probably would have put down 3-10% and then in 1 year paid off almost zero principle.
Assuming I want to sell my condo for the going rate - $250K, I still owe $220K on it.
I probably don't have $200K sitting in the bank so that I can get out from under my condo. But it's a Condo and I just lost my job and found another job in another city.
What do I do other than list an overpriced condo, and pray that some sucker with a big inheritance comes along?
Simple: walk away. The sooner those in such situations do that, the sooner their houses/condos can sell, by the bank. These people should not even bother putting their places on the market.
Are you seeing any price reductions yet in the North Shore in Chicago? Prices seem to be holding fairly steady to slightly declining but nothing is moving. Probably, north shore folks can afford to wait unlike many sellers, though I do expect you will find many great deals in the next year or so as even areas such as Winnetka and Highland Park experience increased foreclosures as more and more people lose their jobs and are unable to meet their mortgage obligations.
Lots of price reductions up here. What I'm seeing in greater proportion is capitulation to a "break even" price. Many sellers are not looking for appreciation above what they paid 2002-2003. If you factor in the 10% below ask that most homes are closing at, that means many homes purchased since 2000 will sell at a loss.
That said, there are still crazies aplenty.
One just listed yesterday at $799k. They paid $541k in 2003 and put on an addition, plus a bit of remodeling. Much nicer homes nearby that have sat stagnant for months (also remodeled and/or expanded) are listed at $749 and $699 and $629. And the home directly through this guy's back yard, that hasn't been remodeled or expanded, is listed at $450k. The immediate neighborhood has very few comps for the last 6 months and certainly not in that ballpark. Best comp I can see sold for $587k in October.
It's a mess up here. I guess distressed sellers have to try, though. If I were a realtor, I'd be embarrassed to put my name on a listing so overpriced.
JUST NOTICED: $799k is its "Make Me Move" price on Zillow for the last 123 days! Total pipe dream price! Too funny. Too sad.
Location: Halfway between Number 4 Privet Drive and Forks, WA
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Quote:
Originally Posted by Heiwos
Simple: walk away. The sooner those in such situations do that, the sooner their houses/condos can sell, by the bank. These people should not even bother putting their places on the market.
Yes and then you can come borrow money from Heiwos for your next house!!! Since you won't be getting a loan from ANY bank. Unbelievable!
It is unfortunate that many threads exist on here with sellers who have been selling their house for a year or more. "No lookers" "Low offers" "No offers" over and over again.
Homes are selling... if they're priced RIGHT for TODAY'S MARKET. Actually, homes that are priced at the market or below the market are getting multiple offers and full price... a price that's lower then it once was, but homes are selling.
Many posters on here are Anti-Realtor because they think that we are not telling the truth. This reminds me of the famous line from "A Few Good Men." when Jack Nicholson's character says "THE TRUTH, you want the truth, you can't handle the truth...." The market is down. Those of us who are responsible tell this to sellers, and some of us walk away from those who want to price their homes at 2004 levels.
Many sellers don't want to "give their house away," yet want to steal a house when they're on the buying side.
Everyone is moving somewhere, and the truth is that whatever you're "losing" on the selling end, you will get back on the buying end.
For those with the money and the guts, this is actually a great time to move up to a larger home. Interest rates are low, prices are down.
Tip O’Neil once said that "all politics are local." This is the same with real estate. Some markets have leveled off... and a few are actually up. Broad strokes only go so far. Florida and California are having huge problems; my area in New Jersey is down, but not nearly as much as those states.
Look at your local areas... some are down more then others. Regardless of the market, look at homes. Take a 4 bedroom, 2 1/2 bath colonial in "Town A," move it to "Town B" and the price can go up or down by THOUSANDS of dollars.
That, my friends, is the truth.
IMHO, I think the next-to-last paragraph of your post contradicts your title and your overall point.
Yes and then you can come borrow money from Heiwos for your next house!!! Since you won't be getting a loan from ANY bank. Unbelievable!
$220K saved would pay for a house outright, eventually. When millions walk away (and they will), they'll need only wait a few years before getting another mortgage anyway; otherwise banks would have few customers.
Location: Halfway between Number 4 Privet Drive and Forks, WA
1,516 posts, read 4,589,470 times
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Quote:
Originally Posted by Heiwos
$220K saved would pay for a house outright, eventually. When millions walk away (and they will), they'll need only wait a few years before getting another mortgage anyway; otherwise banks would have few customers.
The subprime fallout is (nearly) over. What you've got left is Alt A's (which are a bit more well qualified than subprimes) and the economic (job loss) defaults coming. I don't think they will wreak nearly as much havoc as the subprimers, who we all knew were going to default any freaking way....
But that's what my crystal ball says. I have no ulterior motive and I could be wrong. Could you?
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Location still trumps price
