Bargaining Power Galore

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I decided to put together a spreadsheet that contains all houses for sale in the EB Tri-Cities area so I could monitor how sales are progressing. Little did I realize what I had gotten myself into. Sheesh! What a fiasco trying to gather information. Some real estate sites will say a place is a new listing when in fact it is not according to a different site. Then there are the duplicates, triplicates, etc.

But the thing that stood out most to me was the price reduction frenzy. Yes, I call it a frenzy because I don’t know what else you could call it. When a house price is being dropped down weekly by thousands of dollars I consider that a frenzy. I can hear the dialogue now: “Well honey, it didn’t sell this weekend so let’s knock off a few thousand and try again next weekend.” Next weekend comes around and the house still doesn’t sell so why not knock off a few thousand more? And, as you can see by the following examples this is apparently going on for several weeks for some places.

After looking at the pictures of some of the places I can’t help but think of what I would do instead of continually cutting the price by thousands of dollars. I would use some of that money to fix the place up. I noticed one placed dropped their price by $65,000 in one month. There certainly are a lot of upgrades that could be done for less than that. Another place dropped their price by $26,000 in a couple of months and have a backyard in terrible shape. They could fix that puppy up with just a few hundred dollars. I don’t get it! Am I missing something here? Oh yeah, by the way, when I see a place shaving thousands of dollars off over a short amount of time it screams ‘BARGAINING POWER’ to me.

FREMONT
5729 Birch Ter. – 2/1.5 – 1006 sf $340,000>>$310,000(2/13)>>$298,000(2/24)>>$295,000(2/29)>>$275,000(3/5)>>$260,000(3/6)
4920 Everglades Park Dr. – 3/2 – 1285 sf
$580,000>>$560,000(2/7)>>$550,000(2/16)>>$535,000(2/21)>>$525,000(2/26)>>$515,000(3/5)
40467 Gibson St. – 3/1 – 950 sf
$480,000>$435,000(2/1)>>$430,000(2/8)>>$420,000(2/15)>>$399,999(2/17)
37172 Towers Way – 3/1 – 1047 sf
$449,995(2/7)>>$439,995(2/18)>>$424,995(2/26)>>$399,995(3/2)

NEWARK
36338 Beech Pl. – 4/2 – 1606 sf ( What is going on with this backyard??)
$544,950>$539,000(2/2)>>$534,950(2/6)>>$529,950(3/1)>>$519,000(3/6)
37035 Chestnut – 4/3 – 2450 sf
$799,000>>$789,000(1/29)>>$729,000(2/17)>>$699,000(3/1)
6707 Dairy Ave. – 4/2 – 1165 sf
$519,995>>$499,995(2/8)>>$474,995(2/26)>>$449,995(3/2)

UNION CITY
2510 Copa Del Oro Dr. – 1/1 – 590 sf
$214,900>$199,900(1/30)>>$193,900(3/1)>>$187,900(3/5)
4525 Darcelle Dr. – 5/3 – 2100 sf
$629,000>>$619,950(1/29)>>$609,950(2/12)>>$599,950(2/1)>>$589,950(3/5)
138 Donoso Plz. – 2/2 – 880 sf
$315,000>>$300,000(1/29)>>$290,000(2/12)>>$285,000(2/16)>>$280,000(2/26)>>$270,000(3/1) >>$260,000(3/5)


REAL ESTATE TERMINOLOGY:
Equity – (1) The interest or value that on owner has in real property over and above the liens against it; (2) a part of our justice system by which courts seek to supplement the strict terms of the law to fairness under the circumstances, rather than on fixed legal principles or statutes; (3) ownership in property, determined by calculating the fair market value less the amount of liens and encumbrances.