Today I got some realtor spam from an industrious local homeowner. He relocated to Vegas and is motivated to sell his home in Stead, offering a $1000 bonus to find a buyer to close by September 10. Then there’s this couple throwing in a free used car if you buy their home.
Sellers, forget the lame incentives. Here’s how to sell your house in today’s market, pronto…
This home originally listed for the dream-on price of $549,000 in August 2005. By January 2006 it was down to $524,900. Then they switched realtors and relisted it at the same price until April 2006. Then they dropped the price to $467,900. In August 2006, it expired. This time they got serious and listed it with agent number three for $398,900, which is basically a 2003 price. And, voila? In contract, six days later.
Folks, in this market, to sell quickly, you need to be the best deal out there. Not comparable, not at the low end of the comps, but BELOW comps, by a nice margin. That’s how you get your home into contract in six days.
2 comments
Let us take a look at this house that was the subject of your realtor spam. It is rather instructive. It is MLS #60017614.
This house first sold in 1975. Between 1975 and 1990, it appreciated $ 18,500. Or, $1,200 a year over that 15 year period.($100 a month)
Between 1990 and 1996, the next time it sold, it appreciated $22,500. Or, $3,750 a year over than 6 year period.( $315 a month)
Between 1996 and 1999, the next time it sold, it appreciated $12,000. Or, $4,000 a year over that 3 year period.( $333 a month)
Between 1999 and 2004, the last time it sold, it appreciated $42,000. Or, $8,400 a year over that 5 year period. The last sale in 9/2004 was for $115,000. ($700 a month)
Now, today, the owner has it listed for $218,900. That would be appreciation of $104,000 over the last 2 years. Or, $52,000 a year, or $4,400 A MONTH!
Folks, this is how a bubble gets built. What has caused this house to increase in value at the rate of $4,400 A MONTH over the last 2 years?? Did household income in Reno triple in the last 2 years?? Have we had 100% inflation??
Call me an Ignoramus, but it is this kind of nonsense that has created the bubble in Reno.
Now is there a greater fool out there who is going to buy this for $218,900?? Maybe with a nothing down interest only ARM??
Gerorge W Bush: That is how this has happened, print money, loosen reserve requirements, lower lending requirements, increase debt, lower interest rates way below true inflation.
Yeah, way to go W!
The U.S. will end up just like Britain a “has been” world power.
Sniff