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Location: Pittsburgh--Home of the 6 time Super Bowl Champions!
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And when the market starts to improve next year, buyers will be regretting they didn't take advantage of the $8000.00 tax credit this year. Who will be crawling on their hands and knees then?
In 6 months when the bottom keeps falling they'll come crawling on their hands & knees.
If they are already priced far below what they paid for it, and are at or even below what they owe the bank, how much lower can they go before they say F it and walk from the place? That can't short sale if they make enough to meet the payments, but don't have enough in savings to cover the difference.
Some people who need to move because of job relocation, divorce, reduced income from the economic downturn, ect. are trying to do the right thing by selling so people do not call them irresponsible scum bags.
How can they do the right thing, if the best offer they can get on their place in a year, is less then what they owe on it?
And consider, if foreclosure level pricing becomes the new fair market value, even those buying up foreclosures and short sales have lost their buffer and will start suffering depreciation right after they purchase, as the market keeps declining.
I think the White House needs to put a Federal Ban on new construction, until at least 90% of all the homes avaliable are bought up or torn down.
I've said it elsewhere, if buyers keep demanding things beyond the sellers breaking points, even more worn down and discouraged sellers are going to start stripping the homes and let them fall to caca before they list.
Soon, there will be nothing but fixxer upper, neglected or abandoned stripped down, trashed crap out there to buy. Sounds like it has already been happening in some areas. Or the sellers have no choice other then to pull the listing and rent it out instead.
Interesting how the spin of this article is that the potential buyers are "unrealistic." I once saw an article about a real estate auction described the same way. Not a single home sold because the reserve prices were all too high. All the homes went back to the banks. The article said there were "no serious buyers." To me, it was obvious there were no serious sellers.
I feel for anyone who purchased in good faith, with a good downpayment and is now going to have to leave money on the table to sell. Can't even imagine that. It's awful.
That doesn't mean I'm willing to play "charitable foundation" and take the hit on the overpriced property. It's an awful situation, but it's their situation. No reason I have to go underwater, too.
Xanax all around, buyers too. I'll get the first round.
That doesn't mean I'm willing to play "charitable foundation" and take the hit on the overpriced property. It's an awful situation, but it's their situation. No reason I have to go underwater, too.
It is really simple as that...I offer empathy not sympathy.
It is terrible but it's not my concern. I have my own problems!
Bargain-hunting home buyers wearing on sellers | ajc.com (http://www.ajc.com/business/content/business/stories/2009/03/24/spring_lowball_homes.html - broken link)
This article is another example of seller sob stories without background or context. How much did they purchase their house for, when did they buy it, where is it located, how many rooms, and what is the list price? Journalists forget to ask these important questions in favor of the dramatic tilt to sensationalize the story. A newspaper in my area recently ran a story of a couple that bought a huge house at the peak of the market, listed expecting a 10% return on their purchase, and is horrified to find nobody will even low-ball them, all while their agent insists on 25% price cut, minimum, after only a month on the market.
If sellers are getting fatigued by low-ball offers, then it's a clear sign their price is too high. The market for houses continues to fall. Unemployment is escalating, incomes aren't going up all that much, and job migration is changing local markets. Today's prices are higher than next month's prices which are higher than later this year's prices. Everyone was eager to price first-time buyers and modest wage earners right out of the market. Everyone was eager to create bidding wars, have bids come in way over asking price, and create terms that were in the seller's best favor. Everyone wanted huge luxury houses, townhouses, and condos while building very little variety or smaller alternatives for different buyers. Everyone was eager to sign up for a loan or HELOC they'd be paying for the rest of their lives even if it stretched them to the breaking point.
Now the pendulum has come back swinging the other direction. Investments are subject to risk. A house is a type of investment. Millions of people have lost money betting on other investments such as stocks and various funds. People got in as things were going unsustainably high and then got burnt by the market. It happens all the time to all sorts of people. House sellers somehow think they're special and don't have to face the consequences of bad investing. I have absolutely no sympathy for those who lied on their loans, bought outside of their means, bought up multiple properties, bought into real estate flipping, lived off credit, or used their house as a HELOC ATM. Those with legitimate job and medical concerns are different.
Since the stock market is going up some sellers think a recovery has occurred, which is just what people thought in the 30's right before things nose-dived again turning the depression into the Great Depression. If these sellers don't get out now or stay in for the long term, just wait until the government bailouts stop, interest rates shoot up, and inflation or stagflation takes hold. Various kinds of loans are still resetting and will continue to reset for the next several years meaning this problem is far from over particularly with unemployment being so bad, government budgets being so far in the red, and potential increases in everyday goods due to rising energy costs.
Low-ball offers are a wake up call. Welcome to today's market.
Last edited by BigDragon; 03-24-2009 at 07:43 PM..
Reason: spelling correction
This article is another example of seller sob stories without background or context. How much did they purchase their house for, when did they buy it, where is it located, how many rooms, and what is the list price? Journalists forget to ask these important questions in favor of the dramatic tilt to sensationalize the story. A newspaper in my area recently ran a story of a couple that bought a huge house at the peak of the market, listed expecting a 10% return on their purchase, and is horrified to find nobody will even low-ball them, all while their agent insists on 25% price cut, minimum, after only a month on the market.
If sellers are getting fatigued by low-ball offers, then it's a clear sign their price is too high. The market for houses continues to fall. Unemployment is escalating, incomes aren't going up all that much, and job migration is changing local markets. Today's prices are higher than next month's prices which are higher than later this year's prices. Everyone was eager to price first-time buyers and modest wage earners right out of the market. Everyone was eager to create bidding wars, have bids come in way over asking price, and create terms that were in the seller's best favor. Everyone wanted huge luxury houses, townhouses, and condos while building very little variety or smaller alternatives for different buyers. Everyone was eager to sign up for a loan or HELOC they'd be paying for the rest of their lives even if it stretched them to the breaking point.
Now the pendulum has come back swinging the other direction. Investments are subject to risk. A house is a type of investment. Millions of people have lost money betting on other investments such as stocks and various funds. People got in as things were going unsustainably high and then got burnt by the market. It happens all the time to all sorts of people. House sellers somehow think they're special and don't have to face the consequences of bad investing. I have absolutely no sympathy for those who lied on their loans, bought outside of their means, bought up multiple properties, bought into real estate flipping, lived off credit, or used their house as a HELOC ATM. Those with legitimate job and medical concerns are different.
Since the stock market is going up some sellers thing a recovery has occurred, which is just what people thought in the 30's right before things nose-dived again turning the depression into the Great Depression. If these sellers don't get out now or stay in for the long term, just wait until the government bailouts stop, interest rates shoot up, and inflation or stagflation takes hold. Various kinds of loans are still resetting and will continue to reset for the next several years meaning this problem is far from over particularly with unemployment being so bad, government budgets being so far in the red, and potential increases in everyday goods due to rising energy costs.
Low-ball offers are a wake up call. Welcome to today's market.
I don't think the earnest sellers want empathy or sympathy. When they get to the point where they realize, the best their market will bare, is less then what they owe, they just want understanding that they can not go any lower to accept those offers because they do not qualify for short sale status and do not have the savings to make up the difference owed.
It seems soon after any seller gets to that place, they either decide to pull the listing and rent it out so they can move on with their life elsewhere, OR, have no choice but to say F it, abandon the place and face destruction to their credit worthiness.
That is no buyers fault, nor do those sellers deserve a buyers charity. It's just a lousy circumstance of what has happened in the market.
What seems to be understandbly exhausting for them is that some buyers expect the seller to be the charity foundation, and they expect that they should just hand over a chunk of their investment to them for free, or else they..
That is the demanding and unrealistic attitude of some buyers being addressed here.
The other terrible side effect is that, every time a seller has to say F it and walk, their foreclosure sale price further brings down the property values of everyone else around them.
There are many areas where foreclosures and short sales make up the bulk of what is selling and so they have become the new comps.
These problems are costing every homeowner surrounding them either directly or indirectly.
There are many perspectives for viewing what is happening and the more we get to see, the better we can understand the larger picture.
No one has to accept an offer and no one has to make an offer. Everyone has their limits as to how low they can sell or how much they can buy for. When two parties limits do not meet, it is simply time for both to say thanks but no thanks and move on their separate ways.
We hear it here all of the time that buyers think sellers should pull tens to hundreds of thousands of dollars out of their ass to make up the difference owed on it, so they can buy a steal. If they do not qualify for a short sale nor have the funds to make up the difference, they simply can not go lower.
They do not know exactly what the market will bare until they list and find out. Some markets are changing radically from week to week. They may think there is a chance they will get close to what they owe on it. If not, they then eventually come around to delisting, and or renting it out and or walking away from it.
On the upside, it is nice to read the occasional stories here where re-sales are still happening that both buyer and seller feel that they got a fair deal and life moved on merrily for all.
This type of seller is what I am surrounded by in my neighborhood. These are families that bought with great credit, putting 20% down, who are making their payments. Circumstances have arisen that require they move, be it divorce, ailing parents, job relocation, or reduced income.
They bought between 2003 and 2008 and the mistake they made was that they bought in either a bubble market or declining one, without foreseeing that they may have to sell so soon after their purchase. They accept that.
What they are having a difficult time with is buyers expecting them to just hand over their keys for free. They have accepted their losses and just want to make good on what they owe the bank to save their credit. Most do not qualify with the banks to sell short, so they can't.
Leave them be to the next hard decisions they will have to make. They can not sell for less then what they owe. Why and how can that sort of seller be expected too? They are giving it a shot to make good on a bad situation. They have to at least try before throwing in the towel and walking away, or take continued losses on renting the place out for less then their mortgage payment is.
Most have already lost a small to large fortune ( because they put down 20% and invested more in home improvements after they bought) and they can't take any more grief - enter the xanax:
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Who will be crawling on their hands and knees then? 
I suspect sales for stress relief drugs will be on the rise. 
. 
