San Marcos Price Reduction

[patientlywaiting]

Seems to me like the Realtors are backward looking, just like an appraiser would be. They look at sold comps to gauge value, today.

ocrenter is more forward looking in that he looks at the direction market by reviewing asking prices.

The asking prices are dropping and dropping, so it’s only a matter of time until we have closed sales confirmation of the downward trend.

One may wish to debate what the market is at, today. Why bother when all the signs point to lower and lower prices.

There was a time when sellers asked for the moon, got it and drove the market higher and higher. We now have opposite situation where sellers need to get ahead of the curve, and take some painful losses if they want to sell. They will drive the market lower and lower.

Patience is what is needed.

[patientlywaiting]

Seems to me like the Realtors are backward looking, just like an appraiser would be. They look at sold comps to gauge value, today.

ocrenter is more forward looking in that he looks at the direction market by reviewing asking prices.

The asking prices are dropping and dropping, so it’s only a matter of time until we have closed sales confirmation of the downward trend.

One may wish to debate what the market is at, today. Why bother when all the signs point to lower and lower prices.

There was a time when sellers asked for the moon, got it and drove the market higher and higher. We now have opposite situation where sellers need to get ahead of the curve, and take some painful losses if they want to sell. They will drive the market lower and lower.

Patience is what is needed.

[patientlywaiting]

Seems to me like the Realtors are backward looking, just like an appraiser would be. They look at sold comps to gauge value, today.

ocrenter is more forward looking in that he looks at the direction market by reviewing asking prices.

The asking prices are dropping and dropping, so it’s only a matter of time until we have closed sales confirmation of the downward trend.

One may wish to debate what the market is at, today. Why bother when all the signs point to lower and lower prices.

There was a time when sellers asked for the moon, got it and drove the market higher and higher. We now have opposite situation where sellers need to get ahead of the curve, and take some painful losses if they want to sell. They will drive the market lower and lower.

Patience is what is needed.

[patientlywaiting]

I do agree that the short sales are priced low to elicit offers that the FBs can submit to the lenders to try to pressure them.

However, by listing low the short sale FBs submarine the whole neighborhood and cause the legitimate sales to rot away.

Technically, asking prices are not comps (only sold transactions are). But ocrenter is right in that the direction of the market is down to at least the short sale asking prices.

During the boom, it was not unknown for Realtors to collude to manipulate asking prices and drive the prices up. In essence they used the asking prices as comps. And now, the Reators won’t accept asking as comps? I see a certain self-serving dichotomy here.

[patientlywaiting]

I do agree that the short sales are priced low to elicit offers that the FBs can submit to the lenders to try to pressure them.

However, by listing low the short sale FBs submarine the whole neighborhood and cause the legitimate sales to rot away.

Technically, asking prices are not comps (only sold transactions are). But ocrenter is right in that the direction of the market is down to at least the short sale asking prices.

During the boom, it was not unknown for Realtors to collude to manipulate asking prices and drive the prices up. In essence they used the asking prices as comps. And now, the Reators won’t accept asking as comps? I see a certain self-serving dichotomy here.

[patientlywaiting]

I do agree that the short sales are priced low to elicit offers that the FBs can submit to the lenders to try to pressure them.

However, by listing low the short sale FBs submarine the whole neighborhood and cause the legitimate sales to rot away.

Technically, asking prices are not comps (only sold transactions are). But ocrenter is right in that the direction of the market is down to at least the short sale asking prices.

During the boom, it was not unknown for Realtors to collude to manipulate asking prices and drive the prices up. In essence they used the asking prices as comps. And now, the Reators won’t accept asking as comps? I see a certain self-serving dichotomy here.

[patientlywaiting]

I do agree that the short sales are priced low to elicit offers that the FBs can submit to the lenders to try to pressure them.

However, by listing low the short sale FBs submarine the whole neighborhood and cause the legitimate sales to rot away.

Technically, asking prices are not comps (only sold transactions are). But ocrenter is right in that the direction of the market is down to at least the short sale asking prices.

During the boom, it was not unknown for Realtors to collude to manipulate asking prices and drive the prices up. In essence they used the asking prices as comps. And now, the Reators won’t accept asking as comps? I see a certain self-serving dichotomy here.

[patientlywaiting]

I do agree that the short sales are priced low to elicit offers that the FBs can submit to the lenders to try to pressure them.

However, by listing low the short sale FBs submarine the whole neighborhood and cause the legitimate sales to rot away.

Technically, asking prices are not comps (only sold transactions are). But ocrenter is right in that the direction of the market is down to at least the short sale asking prices.

During the boom, it was not unknown for Realtors to collude to manipulate asking prices and drive the prices up. In essence they used the asking prices as comps. And now, the Reators won’t accept asking as comps? I see a certain self-serving dichotomy here.

[Ex-SD]

There are no rules or laws that prevent any house from losing value to less than what it sold for when they were new, several years ago. A home could have sold for $500k new in 2004 but if there are no takers and the house winds up as an REO, the bank will not sit on it forever and will keep dropping the price until it sells. That price could be $200k, $300k or $400k. All that matters is what someone is willing to pay for it and do they have the money (or can they get a loan) to close the sale. This happens with cars, jewelry and any other item of value that is for sale every day of the year.

[Ex-SD]

There are no rules or laws that prevent any house from losing value to less than what it sold for when they were new, several years ago. A home could have sold for $500k new in 2004 but if there are no takers and the house winds up as an REO, the bank will not sit on it forever and will keep dropping the price until it sells. That price could be $200k, $300k or $400k. All that matters is what someone is willing to pay for it and do they have the money (or can they get a loan) to close the sale. This happens with cars, jewelry and any other item of value that is for sale every day of the year.

[Ex-SD]

There are no rules or laws that prevent any house from losing value to less than what it sold for when they were new, several years ago. A home could have sold for $500k new in 2004 but if there are no takers and the house winds up as an REO, the bank will not sit on it forever and will keep dropping the price until it sells. That price could be $200k, $300k or $400k. All that matters is what someone is willing to pay for it and do they have the money (or can they get a loan) to close the sale. This happens with cars, jewelry and any other item of value that is for sale every day of the year.

[Ex-SD]

There are no rules or laws that prevent any house from losing value to less than what it sold for when they were new, several years ago. A home could have sold for $500k new in 2004 but if there are no takers and the house winds up as an REO, the bank will not sit on it forever and will keep dropping the price until it sells. That price could be $200k, $300k or $400k. All that matters is what someone is willing to pay for it and do they have the money (or can they get a loan) to close the sale. This happens with cars, jewelry and any other item of value that is for sale every day of the year.

[Ex-SD]

There are no rules or laws that prevent any house from losing value to less than what it sold for when they were new, several years ago. A home could have sold for $500k new in 2004 but if there are no takers and the house winds up as an REO, the bank will not sit on it forever and will keep dropping the price until it sells. That price could be $200k, $300k or $400k. All that matters is what someone is willing to pay for it and do they have the money (or can they get a loan) to close the sale. This happens with cars, jewelry and any other item of value that is for sale every day of the year.

[sdrealtor]

Ex-SD
You only got it half right when you say “All that matters is what someone is willing to pay for it and do they have the money (or can they get a loan) to close the sale”. That is what we call a willing buyer. The other half that matters is what we call a willing seller. That half depends upon what someone is willing to accept and is able to accept. Until the two meet we dont have a market price.

I’m sure there are plenty of willing and able buyers for $1 homes but there are no willing sellers. this is an extreme example but it points out that there must be both.

[sdrealtor]

Ex-SD
You only got it half right when you say “All that matters is what someone is willing to pay for it and do they have the money (or can they get a loan) to close the sale”. That is what we call a willing buyer. The other half that matters is what we call a willing seller. That half depends upon what someone is willing to accept and is able to accept. Until the two meet we dont have a market price.

I’m sure there are plenty of willing and able buyers for $1 homes but there are no willing sellers. this is an extreme example but it points out that there must be both.

[Author]

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