Sticky on the way down example

[SD Realtor]

A perfect example of sticky on the way down… A very nice young couple with a home in Lemon Grove. It has sat on the market for a few months now… When I took the listing I recommended 450k as a sales price. They wanted 485k and told me every other realtor told them they felt that they could get that price. Over the span of 2 months they had 3 showings. The repriced down to 450-479 a few weeks back. Got an offer at 430k. We countered, they countered our counter to 440k. I told my seller to jump all over it… he waffled and said no way would he sell for under 450k. We countered, they walked…He said he is thoroughly convinced this is only a market correction… He said he would rather just live in his home for several more years even if I am correct about my outlook as opposed to his.

This is why it will take awhile for the correction to happen.

Some people get it and some don’t.

I think that more sellers do actually need to hear other opinions about the real estate market besides those of the real estate professionals.

I wish these guys lived next to Powayseller. I would have had them in escrow!!!

[PerryChase]

I have a friend who’s currently listing his house for $540k. He paid $420k for it in 2004. He said that he would feel “ripped-off” under $500k. Honestly, my research shows that this house would sell for about $420k today.

He’s gonna be chasing the market all the way down to $300k. It’s junky house and I personally wouldn’t pay more than 200k for it.

Problem is that he needs to sell and move up. He still thinks that he can keep on “investing” his way up. I just wished him good luck. This guy is an engineer. Yep, some people get it, some don’t.

[Chrispy]

You know people are being unrealistic when they top Zillow’s high end. I just read about someone quoted in the LA Times who sold two years ago for $440K, said “I could have gotten $100K more if I waited six months,” and promptly went out and bought another house which he has since been remodeling. He claims the new house will be worth $3 million when he is through remodeling next year.

The $100K more he claimed he could have gotten works out to a 45% yearly appreciation. Seems we’re getting it on both sides from these sellers… they either haven’t sold and are determined to hang on until the buyers realize how great their houses are, or they have sold and are irritated that they didn’t get more money.

Lastly, as far as the $3 million the guy referenced above said his house would be worth… why aren’t people equating a house’s worth with what the market will pay? Does anyone say their stocks are worth $150 each when the daily price is around $80?

[LookoutBelow]

God Bess these fools…..They are spending their hard earned dollars and risking their credit to keep this economy going….When it fails (soon) they will want somebodies head to roll.

The 800 lb. boulder is starting its roll downhill, best one can do is get the hell out of its way. I will be at the bottom ready to cherry pick the deals with cash and strong credit.

[PerryChase]

I just talked to a buddy who lives in New Jersey. My friend shares a 5 bedroom house with 5 other friends. One of the housemates is a Realtor. Last year the Realtor convinced the homeowners and another housemate to each “invest” in housing. Well, the two investment houses are now languishing on the market even with steep price reductions (they are chasing the market all the way down). One “investor” moved into her investment property to cut housing costs. She was just laid off and is looking for roommates to help cover her mortgage. The landlords are pissed with the Realtor and they are now considering kicking the Realtor out of their home. Apparently, the Realtor told them that making money on housing was a slam dunk. Each “investor” lost $100k already.

The way I see it, greed will ruin people financially but also destroy many friendships. The coming downturn will leave countless psychological scars.

[JES]

It’s stories like this that make me hope for the 50%+ crash that some on this board are predicting. There are more than a few of these greedy folks in San Diego that need to get their back ends handed to them. I’ll take pleasure in their suffering, just as I take pleasure in the house I saw last week in San Marcos that has been for sale 6 months, is discounted, and has a Mercedes in the driveway also for sale. The owner used to boast that her and her ‘Persian’ husband were investors and owned many properties. Her first question to neighbors was always, “So what did that house sell for?”

This is all part of the sorting out process, known as natural selection in the animal kingdom. I’m damn proud of my Midwest sensibilites and it’s cleaer and clearer to me every day that the majority of the folks out here need to learn about the law of the farm:

“As in farming, success in life comes from regular disciplined, daily effort. A farmer cannot expect to reap a bumper crop by being lazy for three months and then “cramming” to catch up. Similarly, the greatest successes in life are built slowly and deliberately through focused, consistent, high-quality efforts on a daily basis. Success comes not from finding an easy shortcut or by taking advantage of one’s fellow man, but from daily, disciplined, focused effort, directed tirelessly toward a desirable goal.”

[powayseller]

My friend said if she didn’t sell her house (overpriced), the realtor said they would just take it off the market until spring, or rent it out.

[Author]

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