Many homeowners worry about current market conditions, especially those actually trying to sell. And while some don’t have much equity to play with, others have plenty of room to negotiate. How much is enough? Sellers, it’s time to get some perspective. read
Price reductions = 51
Perry
This is a great article. This is the reason you take your $100,000 and spread it among two or three smaller/cheaper houses instead of placing it all into one larger/expensive home. The return on three homes will be better than one. This current market shows that you stand up better with the smaller homes. The market is slow but the under $300k range is still doing pretty good. Someone once told me that shelter always sells. Once you go over $300k you’re still getting shelter but there’s a lot more fluff in it.
What’s wrong with the article? Not enough people will read it. What this means is there are people ready to sell and price their homes for this market but unless you’re leaving town, don’t bother. So far most builders and sellers haven’t caught up with the current reality. There’s a lot on the market to choose from but it’s overpriced. Maybe one way to take advantage would be to sell at the right price today and shine by being appropriately priced which is to say lower than everyone else. In the future people will start to catch up with reality and then you’d be ready to get back in. They say people run six months behind the market trend. The market is already six months beyond where we are now but it will take six months for folks to catch on. Think about what prices were six months ago, if they had asked in most cases then what they’re starting to now they would have sold. I think we’d all agree the trend is down. The flippers should be flippin’ out right about Christmas.
Wazzup
Snip:
Saturday, October 14, 2006:
Michael Stitt of Valley Sierra Mortgage Planners, a division of SAC 1st Mortgage, will present a free workshop, “Why It Still Makes Sense to Buy versus Rent,” from 10 a.m. to noon at Roseville Maidu Public Library, Rocky Ridge Drive in Roseville. Information on the local and national real estate market and the history of property appreciation and interest rates will be provided. For more information, call (916) 367-7100.
This is an interesting thesis, I’d really be interested in the arguments/data he will use to support it.
gotlots
Wazz:
What you think? Think a mortgage broker is going to put on a seminar about why it’s not a good time to buy?
The REIC is starting to feel the pain. How many seminars were these guys putting on two years ago?
Reno Ignoramus
Look at MLS 60008268. This is the second most expensive listing in Somersett. This house has been sitting on the market at $1, 795,000. Yesterday it is reduced by $100K to $1,695,000. A reduction of about 5%.
Does the seller of this house think that dropping the price from $1.8 million to $1.7 million is going to make a difference? I mean, on a listing of $500K a reduction of $100K is a major statement, something that will get noticed, and may well result in an offer. But $100K off of a $1.8 million house? Yawn.
Which raises a question. Why do realtors take listings at unrealistic prices for in denial sellers? Why would a realtor spend the time and money to market a house that is so overpriced that it will attract no offers? Or perhaps a realistic offer that the unrealistic seller will decline? And then, when the agency agreement expires, and the seller has not received his dream on price, he decides the problem is the realtor and not the price, so he goes to another agent?
Any thoughts Diane?
Paul
Hypothetically speaking, and without referring to the particular property commented upon, I think that some licensees take listings at unrealistic prices well knowing they are too high, but it gives the agent a chance to then steer inquiries to other listings. The seller might also have a change in circumstances and be persuaded to take a lower offer. In general, any listing that creates activity and might possibly lead to a sale of something else, is to some extent a justification in the minds of some for taking on an overvalued property. It also allows the agent to demonstrate to his client that the asking price was too high, and a renewal listing will generally be more reasonable.
Wazzup
“This is an interesting thesis, I’d really be interested in the arguments/data he will use to support it.” I think that I should have ended my comment with, LMAO!
Wazzup
Snip:
The Las Vegas Sun from Nevada. “With more than 20,000 homes on the MLS… buyers are in the driver’s seat and calling the shots. ‘In this market, we are competing head to head in a big way with new home inventory,’ said Linda Rheinberger, president of the Greater Las Vegas Association of Realtors.”
“Some sellers are simply pricing their homes too high, agents said. Rheinberger said those sellers would rather turn to incentives than lower the price of their home as a matter of pride. ‘They want to tell people at cocktail parties how much they made on their house,’ Rheinberger said.”
“The number of home foreclosures in Nevada has more than tripled in the past year. Chief among those being foreclosed on are investors who purchased homes about a year ago with minimal down payments and are now holding mortgages they can’t afford. Some homeowners who paid the barest, or zero, down payments now owe more than their homes are worth.”
“Since May, foreclosures in Nevada have increased 83 percent. The foreclosure rate shows no signs of slowing in Nevada with predictions it could triple again in the next six to nine months. Michael Krein, president of Nevada Real Estate Services, which handles foreclosures for banks, said the worst is yet to come. ‘This is the tip of the iceberg,’ Krein said.”
“About a third of the homes now in foreclosure were bought in 2004 and 2005 with adjustable-rate mortgages. ‘They are going to sell them for whatever they can, whether they take a loss or not,’ said Steve Schauer, a local mortgage broker. Many overstretched homeowners are trying to refinance 100 percent loans, only to be rejected because their homes’ appraised values have dropped and they don’t have the cash to make up the difference, he said.”
“The majority of properties foreclosed on are vacant, Krein said. More than 40 percent are owned by investors who bought in late 2005, hoped to turn them around for quick profits and didn’t even make a payment, he said.”
Oh well… What gotlots says…
NVMojo
For those who care, the link to that NV Sun article is:
http://www.lasvegassun.com/sunbin/stories/sun/2006/oct/13/566657865.html
and all I can say is “WOW”!!