OK so as mentioned I am looking at the Cardiff market and here are two homes within 1/2 to 1 mile from each other.
The other day a house goes up East of I-5 (1360 Loch Lomond) with a range of 535K-585K. 1040 Sq. ft. and as SDR puts it the roar of I-5. MLS # is 066059676
Another house we discussed (1835 Playa Riviera) is about the same size and built the same year (Hrrrmmm) though inexplicably the square footage is left out of the ad. I just happen to know from the old Craigslist FSBO ads, that it’s around 1040 as well. It’s range is listed at 719.9K-759.9K. MLS # is 061056530
Now the second home does have some elegant upgrades, and some nice landscaping, but the 1st home is built out with all-steel appliances so it isn’t junk. One has to wonder why there is a 200K difference in price. I think house number 2 might need to up the salesmanship. At the open house this weekend (didn’t see many visitors) the old gentleman showing the house (Playa Riviera) personally took flyers up and down the street advertising the open house, so he is working it hard. However this new listing seems to harm them.
We have a problem with sellers thinking their house is worth what their neighbor got last year. They do not understand the market shifted, and are digging in their heels. In the end, they are only hurting themselves, as they chase the market down.
Think abou this factoid: A few years ago, we had 1 buyer for every home. Now, we have one buyer for every 8 homes.
If I knew I had to compete against 7 other people, because the buyer will choose only 1 of us, I wouldn’t price my home too high. But realtors talk until they are blue in the face, and seller greed and ego are stronger than logic. The same factors that created the bubble: greed, ignorance, lack of rational thinking, are causing the long days on market.
If all homes were market priced, would our sales be at last year’s levels? Maybe.
Two very different neighborhoods though only a few blocks away. House #2 is worth alot more by virtue of being in a better location. But certainly not $200K!
Yes it would appear that while they are less than a mile apart, neighborhood number one is in a very hispanic area. Also it’s backed up to I-5 whereas house number 2 has the street and that large storage facility so it’s slightly less loud.
House number 2 is definitely worth more, but I am starting to think that area is slowly turning into a more hispanic area as well. The demographic seems to be changing at that end of birmingham. I know the area pretty well, and even right around there you have little chihuahua’s harassing kids and running loose.
It looks like our friends on Playa Riveria just reduced to $689,000 after 3 weeks on the market with a Realtor. Looks like they are getting good advice and will be more successful than when they were trying to go it alone.
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