When do home sellers wakeup and drop their prices?

[zzz]

With all of us watching the markets tank day after day, and sentiment worsening as panic settles in and the realization that the market is not going to recover any time soon, when do sellers who HAVE to sell wake up and smell the coffee?

If I were a seller, who is not upside down, I would drop my price, much like Merrill Lynch did last summer when unwinding their positions in the Bear Stearns hedge funds. They were willing to take a 20% instant haircut knowing that as a first mover, they could get out then, knowing that in a few months time that the haircut would be much greater.

It seems like sellers are so completely out of touch with reality.

[Aecetia]

I agree, but I have seen some softening. When the next group of loans starts resetting and/ or jobs dry up, then you will see some changes. There were 5 foreclosures in my neighborhood, but all but one has been sold. They looked like inside deals. No one really lost big. The last one was from a flipper par excellence- 11+ down town condos. They put a lot of money into the house and it was worth over a million, so I really do not see the bank willing to lose that much money on it. However, if they do, that will reset all our comps. It is a matter of time before the real bloodletting starts.

[Aecetia]

I agree, but I have seen some softening. When the next group of loans starts resetting and/ or jobs dry up, then you will see some changes. There were 5 foreclosures in my neighborhood, but all but one has been sold. They looked like inside deals. No one really lost big. The last one was from a flipper par excellence- 11+ down town condos. They put a lot of money into the house and it was worth over a million, so I really do not see the bank willing to lose that much money on it. However, if they do, that will reset all our comps. It is a matter of time before the real bloodletting starts.

[Aecetia]

I agree, but I have seen some softening. When the next group of loans starts resetting and/ or jobs dry up, then you will see some changes. There were 5 foreclosures in my neighborhood, but all but one has been sold. They looked like inside deals. No one really lost big. The last one was from a flipper par excellence- 11+ down town condos. They put a lot of money into the house and it was worth over a million, so I really do not see the bank willing to lose that much money on it. However, if they do, that will reset all our comps. It is a matter of time before the real bloodletting starts.

[Aecetia]

I agree, but I have seen some softening. When the next group of loans starts resetting and/ or jobs dry up, then you will see some changes. There were 5 foreclosures in my neighborhood, but all but one has been sold. They looked like inside deals. No one really lost big. The last one was from a flipper par excellence- 11+ down town condos. They put a lot of money into the house and it was worth over a million, so I really do not see the bank willing to lose that much money on it. However, if they do, that will reset all our comps. It is a matter of time before the real bloodletting starts.

[Aecetia]

I agree, but I have seen some softening. When the next group of loans starts resetting and/ or jobs dry up, then you will see some changes. There were 5 foreclosures in my neighborhood, but all but one has been sold. They looked like inside deals. No one really lost big. The last one was from a flipper par excellence- 11+ down town condos. They put a lot of money into the house and it was worth over a million, so I really do not see the bank willing to lose that much money on it. However, if they do, that will reset all our comps. It is a matter of time before the real bloodletting starts.

[Borat]

They can’t afford to drop their prices. For the established, that home equity is their retirement money. They were planning on living off of their gains, so if there are reduced or no gains, there is a reduced standard of living (or none at all) in retirement. People don’t want to accept that.

People aren’t going to lower prices until they have no other choice. This will start slowly at first and then accelerate.

[Borat]

They can’t afford to drop their prices. For the established, that home equity is their retirement money. They were planning on living off of their gains, so if there are reduced or no gains, there is a reduced standard of living (or none at all) in retirement. People don’t want to accept that.

People aren’t going to lower prices until they have no other choice. This will start slowly at first and then accelerate.

[Borat]

They can’t afford to drop their prices. For the established, that home equity is their retirement money. They were planning on living off of their gains, so if there are reduced or no gains, there is a reduced standard of living (or none at all) in retirement. People don’t want to accept that.

People aren’t going to lower prices until they have no other choice. This will start slowly at first and then accelerate.

[Borat]

They can’t afford to drop their prices. For the established, that home equity is their retirement money. They were planning on living off of their gains, so if there are reduced or no gains, there is a reduced standard of living (or none at all) in retirement. People don’t want to accept that.

People aren’t going to lower prices until they have no other choice. This will start slowly at first and then accelerate.

[Borat]

They can’t afford to drop their prices. For the established, that home equity is their retirement money. They were planning on living off of their gains, so if there are reduced or no gains, there is a reduced standard of living (or none at all) in retirement. People don’t want to accept that.

People aren’t going to lower prices until they have no other choice. This will start slowly at first and then accelerate.

[zzz]

Borat….I understand they don’t think they can “afford” to drop their prices, but my point remains the same because those sellers don’t fall into people who must sell their homes for whatever reason. If you HAVE to sell your house, you better move it quickly and be one of the “few” to drop your price to what might be considered to be a bargain, because when everyone drops their prices, it will be too late.

The banks who held MBS, CDS too long are now in that boat. People were wondering if Merrill was prematurely dumping securities last summer and questioning the move, but now they look like freakin geniuses.

[zzz]

Borat….I understand they don’t think they can “afford” to drop their prices, but my point remains the same because those sellers don’t fall into people who must sell their homes for whatever reason. If you HAVE to sell your house, you better move it quickly and be one of the “few” to drop your price to what might be considered to be a bargain, because when everyone drops their prices, it will be too late.

The banks who held MBS, CDS too long are now in that boat. People were wondering if Merrill was prematurely dumping securities last summer and questioning the move, but now they look like freakin geniuses.

[zzz]

Borat….I understand they don’t think they can “afford” to drop their prices, but my point remains the same because those sellers don’t fall into people who must sell their homes for whatever reason. If you HAVE to sell your house, you better move it quickly and be one of the “few” to drop your price to what might be considered to be a bargain, because when everyone drops their prices, it will be too late.

The banks who held MBS, CDS too long are now in that boat. People were wondering if Merrill was prematurely dumping securities last summer and questioning the move, but now they look like freakin geniuses.

[zzz]

Borat….I understand they don’t think they can “afford” to drop their prices, but my point remains the same because those sellers don’t fall into people who must sell their homes for whatever reason. If you HAVE to sell your house, you better move it quickly and be one of the “few” to drop your price to what might be considered to be a bargain, because when everyone drops their prices, it will be too late.

The banks who held MBS, CDS too long are now in that boat. People were wondering if Merrill was prematurely dumping securities last summer and questioning the move, but now they look like freakin geniuses.

[Author]

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