September 18, 2006 at 4:47 PM #7541FutureSDguyParticipant
So, does anyone know of an example of a property where the seller is making the “first move” on the market under the assumption that it’s going downhill fast, selling the property on a “bottomed out 2008-2009” basis? (I personally don’t think it’s going downhill fast.) That seller might feel that, say, a 300k increase in the sales price after being there for 10 years is pretty darn good and is willing to sell at, say $450, where others are still stubborn at $600+.
I’m not shopping right now and not soliciting for buyer tips; I’m just curious about the psychology of the market. What I find is that the current (inflated) prices are so strangely uniform across the board.
BrianSeptember 18, 2006 at 4:50 PM #35728FutureSDguyParticipant
Another way to phrase this question: are there sellers who are volunteering to lower their price signficantly rather than the market forcing them to.September 18, 2006 at 4:57 PM #35731no_such_realityParticipant
Actually, I think any motivated sellers that think the market is going down fast are simply pricing it right at the market which typically has them 20% below their peers anyway.
Take a look at Powaysellers posts on the houses in her neighborhood. You don’t really have to cut the market if everyone else is trying to take a 10% premium.September 18, 2006 at 10:11 PM #35780SD RealtorParticipant
Don’t see it yet FutureSDGuy. When I take a listing, one of the first things I do is to find out the sense of urgency for the Sellers. Many of the sellers I have encountered are not in an urgent must sell situation. Many of them have alot of equity in the home already or are looking to sell just because they are getting a little jittery. The few that really really have to sell tend to price more aggressively. Most all of the time my pricing recommendation is below the price target they want. So right now the listing comes out at what they want and then they lower the price after having little to no traffic after a few weeks.
Sticky on the way down man… it is still super sticky.
SDSD RealtorSeptember 19, 2006 at 5:21 PM #35893JESParticipant
I looked at a home online last night in Santa Fe Hills in San Marcos that sold for 650k last July. The same model is now for sale for 559k up the street and not selling. 14% less than the comp, and unsold. I bet the people who paid 650k thought that they were sitting on alot of equity too. To really get this crash going we need the depreciation to go deeper, well into the people who think they are now safe. It’s easy to wrap your mind around a loss of a few percent, like the 2% that is now being reported in the news. Much more difficult to accept the fact that your nice 200k cushion has now disappeared! Once the masses panic it is going to really go downhill.
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