Stubborn sellers, sitting on false ego and pride, are hoping the market comes to them. They do not gauge the market, and refuse to list at market prices.
I found this story on today’s Housing Bubble Blog. The seller quit her job as a pastry chef to work full-time selling her house. She does silly things like bake cupcakes for potential buyers, instead of doing the rational thing and just pricing it right.
She reduced from $629K to $525K. She is extra motivated, since she bought another house on 5 acres, and is paying 2 mortgages. But her cupcakes are not helping, and the last comp was $529K. Does she realize that prices have dropped a lot over the summer, and the offer made on that $529K house could be 4-6 months old? Her house is probably worth in the mid 400’s. After all, if it was priced right, she would have some people at least looking at the house.
Why is she overpriced? Let her tell it:
” After six months, we would like to sell it, just so we have peace of mind, but I am not giving away my beautiful home I raised my children in. Maybe we will rent it, but I am not going to throw it away.’”
That is what my other friend said right before she changed her “For Sale” sign to a “For Rent” sign. ‘We’re not going to give it away”.
Famous last words: We’re not going to give it away. Okay, don’t give away $30K now, so you can give away $300K in 2008. Are you going to wait 15 years for the next boom, and hope it will hit the height of this one?
I also love their, “we just wont sell it then” remarks. Cool, cheaper to buy from the bank anywho. Good luck renting it if you just bought it in the last few years.
Stay
Rent
Foreclose
Choose 1.
Or win the lotto and sell. I got 1 number right on 5 tickets Wed’s Super Lotto. Chances may be close.
My friend is chasing the market down and he said: “anything under $540k and I’ll feel ripped-off.” Meanwhile has been sitting on the market. I think that his house is junk. Would not want to live in that old teardown where you swelter in the summer for lack of good insulation and air-conditioning.
Here’s another priceless quote from that article, from the realtor
” ironically buyers were afraid not to jump into the market as they saw prices going up $10,000 to $20,000 each month. Now, buyers are waiting for prices to bottom out.”
When prices were rising, demand was stronger. Now that prices are falling, demand is weaker.
This just proves what I’ve been saying, that lower prices actually reduce demand.
Some on this forum say they will buy when prices fall. Maybe you will, maybe you won’t. Certainly in the marketplace we are seeing that the public at large will NOT buy when prices fall.
We are back to 2004 prices, but we are not back to 2004 demand. We are not even back to 2003 demand. Where the heck are we, demand-wise?
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