Typical Coronado Story

[SD Realtor]

I went to a listing appt in Coronado today. A nice couple that lives in the village and are thinking of selling. They have alot of equity (due to the downpayment) in the condo that was built within the last couple years (also they bought straight from the developer). They don’t have to sell and stated that if they don’t get the price they want then they will not sell. So they asked me what I thought of the price they wanted and I pointed out to them that I thought it was about 15% to high based on the comps and the market conditions. That didn’t phase them. I asked them where they came up with the price they wanted and they said they just felt that is what it was worth AND they said that this was backed up when they spoke to another realtor…This happens to me alot so that didn’t phase me… I pointed out to them that the unit above them sold last year (for cash!) and I broke that price down on a per square foot basis, then applied it to the home they owned. The number that came up was about 5% higher then my recommendation, which is about on considering the depreciating market. Even with that, still no change of heart!! They said that there was appreciation not depreciation with Coronado condos over the past year. So we went on line and I showed them that the appreciation didn’t reflect the entire market. That the skew of high end condos on the waterfront verses condos in the village made it look like an overall appreciation when in reality condos in the middle of the village did not appreciate…

Anyways, they did start to get it by the end of the appointment. They were thankful that I showed them facts that they were not been shown by other Realtors. They probably will not list with me which is okay. However I think this does illustrate a typical example of owners that are not in distress and will simply not sell rather then adjust to the appropriate market conditions.

[waiting hawk]

They will be force to sell lower or not sell at all. I only care about foreclosures and people that are dumping the price. Other than that i see not much going on except foreclosures mounting. Going to be funny as hell to tell a debtor, “you want how much? There is a foreclosure 4 houses up this same street for 20% less”. Thats the fun part.

[PerryChase]

They just bought 2 years ago and want to sell? In a normal market, the transaction costs make such transactions very undesirable.

If they are tired of their condo today, they’ll be more tired of it in 5 years. Sellers can only hold out for so many years for the market to come back. They’ll give up eventually.

I expect this downturn to last 7 to 15 years (i could be wrong). They’ll give up because of old age, divorce, savings running low, etc…

[bob2007]

SD Realtor, is it great you have a clear view of the market and are realistic about it. The unfortunate consequence of that is sellers tend to choose agents who are not, then accept a lower price adjustment later, in part because of your assessment, or they don’t sell at all.

[SD Realtor]

Perry, I do not know if they are tired of the condo or not. I didn’t get a clear sense… They have a few other properties as well but I don’t expect them to give up and sell for less then the crazy figure they are expecting. They are cross breed between the “sellers who don’t get it” and the “sellers who don’t care”. I think there are alot of these types in more well to do areas. They will live in the condo for many years to come as the market slumps. I don’t see them running out of money or anything like that.

Bob thanks for the kind words –

SD Realtor

[masayako]

People are free to do whether they please to do as long as one can bear the consequences. This is a free country.

If they want to sit on it and wait for the price that please them, I don’t care; it’s not my money. If I were them, I would lower the price(be less greedy, more price conscious), sell the damn condo, invest the money in something that will have a better chance appreciating in the next decade.

That’s just me. But well, whatever floats your boat, you know.

[exeunt]

phase-faze……………

Phase: A period or portion of time, as in “that was a lively phase in his life, every day brought a new woman to his doorstep”.

Faze: To break ones composure, as in “it took much more than that to faze her – she was determined to be the last woman to cross his threshold”.

f’you cannot spell
you cannot sell
‘cept to the person
who aint bin lessoned!

I recommend y’all to the “Calculated Risk” blog, to the poster named “Tanta,” for a lesson in erudition…

[PerryChase]

SD Realtor, I didn’t mean to say that these particular sellers will run out of money.

One thing that I’ve noticed with high net-worth individuals, is that, more than any other group, they are very averse to taking losses. But they are realistic also. If the market turns south and stays that way for many years, then that becomes the new norm. At that point, even homeowners with lots of money may sell because of changing circumstances in their lives.

The well-to-do owners won’t sell at the beginning of the down cycle because they have staying power. It’s the marginal sellers (the neighbors) and new construction that cause the market downturn.

A prolonged downturn will cause even the most determined holders to eventually sell because of changes in their lifestyles. For example if they are forced to move to an assisted-living home because of illness, they may sell rather than take a $3000/mo loss by renting out the unit.

———

I also recommend Calculated Risk.

[SD Realtor]

Gotcha Perry…

or

Got ya Perry…

or my favorite

go Tya Perry.

SD Realtor

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