533k jobs lost another wave down in prices?

[SHELLY]

While viewing the public MLS, I came across a couple of listings that described the seller as "firm" or a "firm price". Does not sound like the right psychology for the current market.

...not as bad as the tactic I saw used earlier in the bust where the seller states that they're lowing the price for a "limited time" <say, during the Memorial Day weekend> and will increase it again :funn: ...it's not like these properties are Loafers at Payless Shoe Store.

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[Bobby J]

...isn't the fact that your client is "leaning toward" a higher priced house a good thing for you?....or are they trying to get the $395K house for $200K?

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Not really Shelly. I have noticed when a buyer is playing these games looking at practically identical homes and leaning toward the more expensive one they are not real buyers.
I would rather the buyer wake up and buy the one for $239,000. We tend to close these.

 

[Bobby J]

I'm in full agreement for putting your best foot forward when you price a home for sale and saying firm. There have been plenty of times where buyers have passed on a better home for their situation because they could not get the seller to move off price as much as they wanted.

"Let's keep your eye on the prize." Vince Vaughn, Wedding Crashers.

I say put your best foot forward but don't advertise it as such. Let them come in and fall in love. With all the inventory on the market you have to be careful to not alienate any buyer. Comments such as "firm" and "firm price" may push a buyer in another direction. The hard part right now is getting them through the door. How can we show off the "granite and stainless" if one is saying firm before they even see it?" Most buyers I have worked with lately would just say skip it. Get them in the door and falling in love with the home. Then be firm when the offer comes in. Hopefully, they are already seeing themselves in the home. Just my 2 cents.

 

[chanster]

bobby i'm first hand seeing the total devastation nation wide with peoples wealth evaporating before there eyes. yes there's still some holdouts that remember the peaks in 30a prices and think these are bargains. i look no further than stocks like msft,csco,ge. 10 years ago people couldn't get enough of them. here we sit 10 years later and many are still down 70-80%. all the way down all thought they were a bargains and now they're stuck. i have friends down 3-5 mil in 5 months. my point is just like real estate everyone tried to pick a bottom in these stocks only to get stuck. the same with real estate. i'm sure many agents were calling south walton prices a steal 1 year ago only to be down 20% in 12 months. we all must realize the 2000-2007 period was a massive bubble that will never return. 50% of past buyers can't get financing thus sales will never get near past #'s. just like car sales peaked at a bubble # of 18 mil with cheap easy financing for all, the true # will be more like 14 mil or so which means millions of layoffs in the car industry could be coming over the next several years. wait till you see the list of retailers closing there doors in early 2009 after the xmas season . most americans are broke ,indebted up to there ears and scared if they'll have a job in 2009. throw in a gov't creating deficits that are frightening and the future looks bleak for now.i believe americans are in a huge retrenching phase and will become savers in the years to come thus creating a japan type flatish economy for the next decade or so.THAT SAID IF YOU HAVE ANY DESPERATE SELLERS LET ME KNOW I'M READY TO BUY AT A BIG DISCOUNT. LOL

 

[Bobby J]

THAT SAID IF YOU HAVE ANY DESPERATE SELLERS LET ME KNOW I'M READY TO BUY AT A BIG DISCOUNT. LOL

For all the doom and gloom in the world I sure get a lot of this... Do you want a big discount or a good deal?

 

[chanster]

Correct bobby the mkt determines whats a "good price". prices of homes will decline to levels were they find buyers. it's simple supply and demand. but as people see more bad econ news daily it changes there perception on buying and selling. a seller becomes more motivated as a buyer becomes more hesitant trying to discount possible future price declines in his offer to buy.but each time several short sales or foreclosures sell in an area at lower prices they re define the new floor for prices. ITS A VICIOUS CIRCLE DOWN JUST LIKE THE MOVE UP FED ON ITSELF.as of now most prices are still way to high to justify for renting purposes. for instance beachcrest or one seagrove near 400k are disasters for anyone trying to buy to rent out. if you use garrett realty to mange the rental you're lucky to cover 1/2 your expenses even renting in 30 weeks of the year. you're a realtor trying to make living and i'm a buyer trying to buy property and avoid a big drawdown if prices continue falling.we both have vested interests in our opinion. I DO KNOW THIS. WHEN THE MKT BOTTOMS IT WON'T BE A V SHAPED RECOVERY.FROM WHAT I CAN TELL PRICES MIGHT BE BACK TO 2003 ISH AT PRESENT. SURE SOME ARE AT 2000 OR SO BUT MANY ARE ONLY BACK TO 2003

 

[TooFarTampa]

Correct bobby the mkt determines whats a "good price". prices of homes will decline to levels were they find buyers. it's simple supply and demand. but as people see more bad econ news daily it changes there perception on buying and selling. a seller becomes more motivated as a buyer becomes more hesitant trying to discount possible future price declines in his offer to buy.but each time several short sales or foreclosures sell in an area at lower prices they re define the new floor for prices. ITS A VICIOUS CIRCLE DOWN JUST LIKE THE MOVE UP FED ON ITSELF.as of now most prices are still way to high to justify for renting purposes. for instance beachcrest or one seagrove near 400k are disasters for anyone trying to buy to rent out. if you use garrett realty to mange the rental you're lucky to cover 1/2 your expenses even renting in 30 weeks of the year. you're a realtor trying to make living and i'm a buyer trying to buy property and avoid a big drawdown if prices continue falling.we both have vested interests in our opinion. I DO KNOW THIS. WHEN THE MKT BOTTOMS IT WON'T BE A V SHAPED RECOVERY.FROM WHAT I CAN TELL PRICES MIGHT BE BACK TO 2003 ISH AT PRESENT. SURE SOME ARE AT 2000 OR SO BUT MANY ARE ONLY BACK TO 2003

I don't have any idea how much lower prices will go, and they may indeed trend lower in the next year or two. But I've said it before and will say it again: If you expect to break even or come close to it by renting out your place to vacationers, you are looking in the wrong market. That will not be possible in SoWal ever again. Too many people now know about this special place -- and believe me, if prices were down to the point where buyers could break even by renting their homes in the peak season, there would be no homes to be had for sale. And prices would go back up.

You are going to pay a premium for the privilege of owning in SoWal. The premium is less than it was in recent years, but this kind of super-special beach property is not and should not be the kind of place where expenses will be covered off the bat. What any buyer should be looking for is a good value with the potential for healthy long-term appreciation. Again, not saying we are there yet, but don't expect a property to cash flow right away. You just can't compare it to the average landlording situation.

 

[AAbsolute]

You could cash flow with todays rental rates and 1998-1999 property values.

 

[Bobby J]

I know a bank owned home right now in Seagrove that the bank wants $635,000. The last owner was doing $100,000 in rental income. This one looks pretty strong. The buyers are really missing this one.

Brandon, I make money when it goes up and when it goes down. 2006 was bad for me. Had I woke up to what was going on it would have been better (I was busy fighting with Shelly). My numbers have improved every year since 2006. This year Garner and I have averaged 2.5 closings a month. Not bad for a down market. My personal portfolio is screwed but it helps when my clients know I drank the koolaid too. I am sure it will continue to drop but I feel pretty confident In the area. You are one of many, many looking and waiting for deals. Just make sure you buy on the left side of the curve. ;-)

 

[JoshMclean]

You have to love it. The economy is headed down the toilet. Everyone is losing their jobs. The world as we know it is ending. If you know of anyone looking to get out while they can, I'd be glad to help!