Misguidance on Real Estate plunge

[Smiling JOe]

I totally agree with you on this statement and thats why it is :roll: imperative to price right the first time.

I agree, but doing so doesn't take time and change into effect. This other ForSaleByOwner, when originally posted for sale, could have probably brought $260K- $275K, and likely more if the market had not slowed. You are right that he could have probably sold it if he priced it correctly back then, but back then, you could place a price of $250K on the property and get a contract the next day, and the sellers were complaining that it was priced too low, even though the only other closed sales were selling at $225K. So, he was just trying to price it at its highest potential. The problem of him selling it is that he remains stuck believing that his property is worth more than it is likely to sell for right now. Maybe 10 years down the road, his dream may come true, but we are living in 2007, not 2017.

 

[dunelover]

A buyer who may be interested in my listing will never call for a price, but instead, use the ForSaleByOwner's posted price of $325K to base the asking prices for all similar lots in the area (and you know that the ForSaleByOwners "has to be" the cheaper of the two -- afterall, he isn't paying a commission -- :funn: Right!) .

Been enjoying this thread, and as a potential buyer, I would think that most of us are watching, and have to be somewhat educated and think that their are two types of FSBO--one that "has to sell", and one that isn't too serious and not willing to budge on price.

 

[2bfabian]

Dune lover,

I ask you why are you not buying right now? could it be that you feel the prices are going to come down more? If you knew for a fact they were not and you wanted a place here would you go ahead and buy or wait until the prices rose?

 

[TooFarTampa]

Dune lover,

I ask you why are you not buying right now? could it be that you feel the prices are going to come down more? If you knew for a fact they were not and you wanted a place here would you go ahead and buy or wait until the prices rose?

Very instructive thread! I have to jump in here and ask why are you selling right now? If you don't "have" to sell, it doesn't do you or the greater market any good to put yours on the MLS at this time. There are just too many properties for sale and not enough buyers, so those with the lowest prices are going to get the traffic and interest. You can't really blame that on the realtors.

Lots of people are in dire straits and willing to sell just to sell -- and anyone who isn't in that position should not even have their properties on the market right now, in my opinion.

 

[Bobby J]

Dune lover,

I ask you why are you not buying right now? could it be that you feel the prices are going to come down more? If you knew for a fact they were not and you wanted a place here would you go ahead and buy or wait until the prices rose?

2Fab,
I really like your theory but it really does discount the dynamics of basic economics. What the market is doing is normal and to be expected. I am as upset as you about drop in values but truly believe this thing will correct itself once the cycle is complete. I think the majority of agents try to go in with the right price but sellers tend to think they know what the values should be. The agents first mistake is letting the seller determine the price. Remember, the buyer determines value, and every month your property does not sell at its current price is less value perceived by the buyer.

 

[2bfabian]

So true.....

 

[2bfabian]

And for u Tampa you have a great point also....

 

[dunelover]

Dune lover,

I ask you why are you not buying right now? could it be that you feel the prices are going to come down more? If you knew for a fact they were not and you wanted a place here would you go ahead and buy or wait until the prices rose?

I think you are getting at would I wait for a better price? I think prices will come down more, but it is worth watching now, as plenty of people are desperate to sell and dependent on the property, it might be worth buying now, as I would be in it for the long term---i.e. not a second home or vacation home. However, I would probably rent long term, for a year to be sure where I want to live. BUT, there is more to my picture, like relocating a business and three kids...so I am in a holding pattern. Thanks for asking.

 

[dunelover]

Very instructive thread! I have to jump in here and ask why are you selling right now? If you don't "have" to sell, it doesn't do you or the greater market any good to put yours on the MLS at this time. There are just too many properties for sale and not enough buyers, so those with the lowest prices are going to get the traffic and interest. You can't really blame that on the realtors.

Lots of people are in dire straits and willing to sell just to sell -- and anyone who isn't in that position should not even have their properties on the market right now, in my opinion.

Totally agree, it does degrade the market!! and possibly confuse a few buyers, tie up realtors and everything else.

You know what is interesting to me is, that after speaking w/ a couple agents in the area, they actually said they would get back w/ me and didn't? That doesn't help the market either--kind of suprising considering how they should be jumping on my business....I was checking out commercial, but little did they know that w/ that commercial came residential later!!! hmmm.

 

[rancid]

Been enjoying this thread, and as a potential buyer, I would think that most of us are watching, and have to be somewhat educated and think that their are two types of FSBO--one that "has to sell", and one that isn't too serious and not willing to budge on price.

I too am enjoying the thread and am in the market when I think the bottom has been reached. 2Fabian-Lowering prices are not what keeps me out of the market ( I believe your point is that lowering your price encourages people to stay out of the market)but rather the inventory available and the lack of sales. If prices coming down increased sales( as most economic theory attests to), then I would be more inclined to jump into the market thinking it is near the bottom.