Real estate selling price versus asking price (Rye, Yorktown: sales, real estate market)

[fyrisle]

A number of factors make me suspect that sellers are no longer getting near what they are asking for and a discussion in a different thread gave me the impression that some people see a very different picture. One of the factors that shape my opinion is that trulia.com shows the median sales price dropping sharply from the prior quarter in areas such as Irvington, Croton-on-Hudson, Yorktown Heights, Katonah, Tarrytown and Larchmont while some higher end areas such as Rye and Chappaqua show smaller drops. In the mean time, the average listing price is more mixed with it actually increasing in some of these areas.

I also recall that during the market's peak, a realtor advertised that sellers were getting 90% of their asking price which makes me suspect that is not normal during a bearish market.

I have also seen NYT articles mentioning prices in strong real estate markets are dropping. One article said many people in Greenwich Connecticut were getting 70% of the asking price while another article said a realtor was recommending sellers in Manhattan lower there asking price to 85% of the average selling price.

Does anybody else have a strong opinion on how much Westchester sellers are getting versus the asking price?

I came across a NYT article regarding Westchester real estate titled "No Price for Wishful Thinking" discussing how many people get much less than their asking price and how there is a perception gap between buyers and sellers. Here is a link to the article: http://www.nytimes.com/2008/11/02/re...pricing&st=cse

[Asil65]

I would love to hear what people think about this. Unfortunately if people live here they want their property values to remain at their highest prices. I know that here in Virginia there are many houses on the market so it has really become a buyers market and people are not offering full listing prices.

[dma1250]

I think it totally varies and depends on asking price and on the seller. Some properties are priced 'reasonably' for the current market. Others have been reduced a lot already and are now priced according to the current market. Others have been on the market for over a year without a reduction and are overpriced. If you track some properties you'll find that quite a few sell pretty quickly and for pretty close to asking, while quite a few others sell for well under asking and others just sit and sit. I also see lots of houses being rented (instead of sold) and lots being taken off the market. And then there is the fact that lots of sellers have no real need to sell and aren't negotiable. They may have turned down lots of low offers. Other sellers of course really do need to sell and they are willing to take less than the asking. So I really don't think you can make any generalization. My suggestion is to pick a few houses that you like at different prices and keep track of them or a few months.

[havoc315]

dma is completely correct. It is undeniable that values have dropped significantly over the last year. Some sellers have already incorporated that adjustment into the listing price, others have not.

Further, different sellers price with different motives. One seller might price high, but with a willingness to take much less. Other sellers may insist on getting close to full asking. It partially depends on the motive of the seller. Someone behind on their mortgage or selling because of a relocation, may be desperate with more flexibility. On the other hand, a downsizing retiree may decide to only sell if the price makes it worth their while.

For the most part, I would not expect sellers to quickly accept less than 90% of list price. The list price at least reflects the realm of their expectations. As they adjust expectations, they may change the list price. But if they haven't changed the list price, then they probably haven't changed their expectations significantly.

I will cite one house as an example. We had an interest in a house in Croton. At the height of the market, it may have been worth 850-900. Refusing to accept the decline in house values, the owner priced it at 900. It sat for months. Price was then adjusted a couple of times, down to 770. I know the owner then turned down an offer of 670. Finally, price was adjusted to 729, and it finally sold for 700.

So ultimately, it sold for about 95% of asking, but only after several adjustments to expectations and asking price.

[Asil65]

I would love to be able to see some stats about listing and final prices in Katonah, YH and Croton. It would be interesting to compare the towns. My gut tells me that Katonah houses will likely get closer to their asking prices. It would be interesting to see what the trends are. We will likely be looking to buy at a horrible time , January or February. I am worried that many of the houses that we have been looking at will be pulled from the market. I guess you can always still approach the homeowner with an offer even after a house has been pulled. We may be better off renting in he town we think we want to move to so we can spend more time looking at areas and homes. The thought of having to move 2 times is daunting.

[havoc315]

We pulled our house off the market in October, with the intention of putting it back on the market in late January or February.
Traditionally, the winter is slow, and more houses get put on the market in the spring (as many families anticipate moving at the end of the school year).
So I wouldn't worry about it-- By February, there will probably be more options available than now, not less options.