Days on market vs. price expectation

[moneymaker]

How many days on market today suggests unreasonable price expectation by seller? I’m thinking 45 or more. Should have made this a poll but got to leave here soon, seems like a lot of houses are lingering when there is low inventory.

[spdrun]

Good. Lingering homes are the solution, not the problem. Time for uppity sellers to get some sense drilled into them by Mr. Market.

[Coronita]

[quote=spdrun]Good. Lingering homes are the solution, not the problem. Time for uppity sellers to get some sense drilled into them by Mr. Market.[/quote]

Maybe sellers aren’t in a hurry or desperate to sell… I wouldn’t be.

[Coronita]

[quote=moneymaker]How many days on market today suggests unreasonable price expectation by seller? I’m thinking 45 or more. Should have made this a poll but got to leave here soon, seems like a lot of houses are lingering when there is low inventory.[/quote]

What time during the year?

[SD Realtor]

Hi Moneymaker

Unfortunately, the answer is that each case varies somewhat. I made a post earlier in the thread by nervousbuyer on the subject.

It all depends on initial pricing with respect to comps. A less relevant factor is overall pricing as well. In the other post I was referring to communities in La Costa valley and some others in and around 4S Ranch. In these areas many sellers were coming in with initial pricings that were up to 10% above comps and had no reason being there. After about 40 days they were starting to come to church and bringing the pricing down.

Those were homes that were priced in the 900 and more range and had no reason being above say 850. One in particular came all the way down and has now received two offers in the past few days.

If they would have priced correctly to begin with they probably would have received higher offers to begin with.

So yeah your 45 day number is not a bad generalization. I would agree with you.

[spdrun]

Maybe sellers aren’t in a hurry or desperate to sell… I wouldn’t be.

Most sellers aren’t the average person on this forum. If the house is on the market, they want to sell it. Either they need to move and they don’t want to be landlords (it gets a bad rap), they can’t make payments, or they want to move up. Most listings are also by broker, and brokers want to earn a commission. Therefore, there’s pressure to sell.

[Coronita]

[quote=spdrun]

Maybe sellers aren’t in a hurry or desperate to sell… I wouldn’t be.

Most sellers aren’t the average person on this forum. If the house is on the market, they want to sell it. Either they need to move and they don’t want to be landlords (it gets a bad rap), they can’t make payments, or they want to move up. Most listings are also by broker, and brokers want to earn a commission. Therefore, there’s pressure to sell.[/quote]

If you say so.

[spdrun]

How many people do you personally know who take selling their home lightly?

[Coronita]

[quote=spdrun]How many people do you personally know who take selling their home lightly?[/quote]

I don’t know many people desperately selling because they have to. Come to think of it, I don’t know anyone that is desperately trying to sell. I see a lot of people probably asking for a high price to see if it sticks. And in this market, anything is possible.

[spdrun]

You’re already said that your circle of acquaintances is largely self-limited 🙂

[joec]

I think flu’s point is people who bought in the past downturn or refinanced are in no “financial pressure” to sell. Most had to come up with down payment since there was no ninja loans at that time and their income was verified hard.

I bought in 4S and we paid in the 600s so if things are at the 800s or 900s now, then with what our mortgage is compared to rents (all rents I see now are higher than my mortgage even considering CFD fees)…You add in tax benefit of a mortgage and the cost to carry your home is much less for the buyer from the recent downturn.

Since the buyer I described above (bought during the downturn) above can rent out their home to a family for less than forcing a low sale price, they will just pull the home from the market if they don’t feel like they can’t get the price they want.

Some might sell still to just get rid of it, but as I mentioned before, I know of a few people in the area renting who has left with no desire to sell since the rent easily covers their mortgage and where else are you gonna put the money?

Of course, there will be people who DIDN’T buy closer to the bottom and there are divorces, job transfers where people have to leave…and that’s why there are transactions, but if you’re 200k+, maybe you aren’t hurting too bad…and, if it’s not a divorce, you can still rent it out.

[spdrun]

Most people “don’t want to become a landlord, it’s too much trouble.” You’re also not thinking of people with HELOCs that are resetting, and people who are running out of options after their foreclosure was delayed by the Homeowner’s Bill of Rights.

[Coronita]

[quote=spdrun]You’re already said that your circle of acquaintances is largely self-limited :)[/quote]

Well, like I said before, striving for economic “diversity” isn’t that high of a priority in my life. But if it is for you, because it makes you feel better about yourself, and that floats your boat, go for it :).

[Coronita]

[quote=spdrun]Most people “don’t want to become a landlord, it’s too much trouble.” You’re also not thinking of people with HELOCs that are resetting, and people who are running out of options after their foreclosure was delayed by the Homeowner’s Bill of Rights.[/quote]

HAHAHAHAHA… HELOC resetting… HAHAHAHAHA…..

Yes, and those won’t be the ones pricing their homes astronomically high. Those will be the ones selling at market prices, and those are the ones that probably don’t sit 45days as active….In other words, those won’t be the ones that stay on the MLS long enough for most of us to be having this discussion.

[gzz]

In 92107, fairly priced places over a million still take a while to sell, but they still usually do around the initial asking price. Under 600k disappears in a couple weeks by contrast. So do places under 900k on full size lots.

[Author]

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