Comments on: Desperate is a Relative Term

By: Price Drop Dynamics | Redfin Seattle Sweet Digs

Price Drop Dynamics | Redfin Seattle Sweet Digs — Wed, 08 Oct 2008 18:32:46 +0000

[...] you also, readers, for giving some hope. Last week, I asked whether or not homesellers out there are continuing to see action, either in actual [...]

By: Christy

Christy — Wed, 08 Oct 2008 16:12:34 +0000

As a buyer who recently sold a home, I am in total agreement with the buyers here – and I wish all the sellers in Seattle could read these posts. Yes, you feel your house is worth a certain amount. And yes, you’ll feel like you’re taking a hit on equity if you drop the price. But when you buy, you are going to suddenly go from that to feeling that the listing prices on the houses you want are ridiculously high. And you’re going to want to make lowball offers, because you are certain (and you’re right) that the house is not worth what they’re asking.

In the past few weeks, I’ve seen some sellers list at just below their competition. And guess what? The houses were gone in a matter of 2 weeks or less. They may have sold it for a painful price, but they didn’t have to go through the pain of six months or more with a house on the market (before getting desperate and finally selling it for what they should have originally listed it for).

If your studs-our remodel in a good neighborhood is not selling, there is only one reason, as ever: PRICE.

By: me

me — Tue, 07 Oct 2008 15:50:23 +0000

if you aren’t getting offers close to your price, then it is not priced extremely well. the market is over inflated and something has to give. instead of fighting it (not likely to work and only drags out the pain), take advantage. sell your house for a little less than you want for it (10%?) but then move up and get the same discount on your new house. you’ll be ahead overall. or, insist your house is priced right even tho you can’t actually sell it for that price, and prepare to wait.

If you couldn’t tell yes I am a buyer. I am from out of state, got a new job, sold my house back home (wasn’t easy, had to drop the price) and am not about to over pay for a house here just because everybody else did. I have been watching eastside houses in the 400-600 range since april and not a lot is selling. prices are dropping almost across the board, and still the houses sit there for months. we made the hard decision to drop our price a little back home (chicago market, 8th hardest to sell according to that recent forbes list) and it paid off, because our house actually sold, in 3 months. Now we are in the drivers seat. Renting in the meantime.

By: teri

teri — Mon, 06 Oct 2008 20:37:11 +0000

I am glad some sellers are holding as some buyers seem to think they can low ball and still get a home without offering a fair market price. We bought a home we could afford a few years ago and now are looking to move. Our home is priced extremely well and yet people come in with offers 40-50k below the asking price which is already slightly below other comps in our neighborhood and our home is a complete studs out remodel.

By: Eastsider

Eastsider — Mon, 06 Oct 2008 20:05:36 +0000

I meant “sellers” and builders seem to be holding.

By: Eastsider

Eastsider — Mon, 06 Oct 2008 19:45:32 +0000

As a buyer this is a very frustrating market. We are qualified and have been looking for about a year in Kirkland/Redmond. We need a bigger house and also a tax break so this is a “move up.” However, we absolutely will not get hurt on a real estate transaction and I think Kirkland/Redmond have been hyperinflated for quite a few years. So the current challenge is that builders and buyers seem to be holding. I’ve actually had real estate agents stop the conversations by saying things like “these buyers are very lucky” (I understand that to be codeword that they won’t entertain offers unless of course they are 1-2% less or some pittance off their hyper-inflated price). I had another RE agent say that the builder was in a very good holding position. Folks, conversations like these are what I call testing the waters. If you’re trying to sell your house be sure your RE agent isn’t standing in the way of a sale.

By: Debra Sinick

Debra Sinick — Sat, 04 Oct 2008 01:00:16 +0000

Hi Katrina,

Good post. If someone is selling in today’s market, the key is to set realistic expectations and be flexible. Sellers cannot expect to see the same number of buyers as they would have seen last year. Sellers cannot expect anywhere near the pricing as before either. (no big surprise here)

The homes that do sell are owned by sellers who are competitive, meet the market, and change their pricing as the competition changes.
If a seller is uncomfortable with this scenario, they should wait it out.

It is, however, a great move up market. It’s a great time to make that move to a more expensive property, if you need a bigger home for example. Be flexible on the selling price of your current home and in the driver’s seat when you buy.

By: djohnes

djohnes — Fri, 03 Oct 2008 06:07:40 +0000

I too am ready to buy – approved, qualified, guaranteed, ready and looking. Problem is, my realistic budget is about 20,000 or so under what people want for what I need (and I truly don’t need much), in the areas I need to be in for my commute. There are homes that have been sitting on the market for weeks and even months that I could and would buy in a minute, if the sellers would drop their prices just a little bit. If I was a seller, I’d hate to be selling right now. But if someone really wants or needs to sell, there are buyers out here if the price is right.

By: Christy

Christy — Thu, 02 Oct 2008 22:11:27 +0000

I am in the very enviable position of relocating here having just sold our previous house. We have a down payment, we have good credit, and we have income.

The problem is that, thanks to sites like Redfin, we know what houses are actually selling for – and it’s a lot less than the listed prices on similar houses. I’d say home sellers should look at that, too, and realize that if your house isn’t moving, it’s because you need to reduce your expectations. It seems that sellers here are used to getting close to their asking prices and are unwilling to go lower even in the face of evidence that their houses aren’t worth nearly what they’re asking.

We sold our house, yes, but it was for about $50,000 less than our original asking price, and only after three reductions in listing price. We estimate that we could have sold the house in a better market for at least $30,000 more. But none of us is in a good market these days. If you want to sell your house, and you’re getting no interest, REDUCE THE PRICE. And sorry, but welcome to the pain you seem to have been insulated from for so long.

Good luck!