[quote=bearishgurl][quote=spdrun]Whether a home is paid off or not has no effect on value, only on whether the home CAN be sold without resorting to short sale or bank foreclosure.[/quote]
I understand that, spdrun. But an owner who has a paid-off property to sell (esp a longtime owner in CA with artificially low taxes) has many options. If they don’t get their price, they can rent it out or just furnish it, get an occasional landscaper and leave it “vacant” for occasional guests. Many do.
All I was trying to say is that these owners don’t have to entertain lowball offers or even need to price their listing in line with the comps. If they don’t get any offers that they will accept in a short period of time listed, they can just withdraw the listing and wait for a better day. And many do because it costs them very, very little to hang onto the property into oblivion.
I believe lots of these owners are just “testing” the market when they list. And they have the luxury of time and can do so.[/quote]
But this still doesn’t change the price they could get for their homes if they were to decide to sell. The only homes that matter are the ones that do sell to buyers who are willing/able to buy at a given moment in time. Those buyers are under no obligation to buy a house for any price, much less an artificially inflated one.
