Comments on: Price Drop Dynamics

By: Judd

Judd — Fri, 10 Oct 2008 18:46:02 +0000

On the Eastside here in Seattle, I see so many recent listings at ~$700k which were originally built & sold at $~450 in mid 2004. Making $200k in 4 short years is a pretty ridiculous expectation in today’s market & overall economy…these people need to get real.

By: Buyer on the Sidelines

Buyer on the Sidelines — Thu, 09 Oct 2008 18:59:56 +0000

Sellers in Seattle are still ridiculous about their prices. It’s as if they don’t read the news abou tightening lending standards and the constant layoffs.

If they “really” want to sell their home, they need to list their home based on comps of recent sales within the last 3 months, and then take at least 10% (or more) off of that number.

By: Christy

Christy — Thu, 09 Oct 2008 17:04:48 +0000

Our agent has told us that in Seattle, people won’t even consider “lowball” offers. We’ve watched the market so closely that we feel we have a good idea of what houses will sell for. So far, we’ve waited for drops in the asking price rather than lowball. That is likely to change, though, as we get more motivated to buy (renting right now and don’t like it).

When we make an offer, we’re probably going to offer 8-10 percent under asking and see what happens. I’m guessing the sellers will freak out. But we hope they won’t ignore us and will negotiate instead. And if they don’t, there are other houses for sale. We want to buy at a price that will allow us to weather the next couple years whether overall values rise or fall.

By: sf_boomerang

sf_boomerang — Wed, 08 Oct 2008 23:50:31 +0000

My wife and I won’t even consider buying until we see some real price drops.

We’re currently in the Bay Area in a rent-controlled apartment, and while we can’t wait to move back to Seattle, we’re just not buying until prices drop substantially. We’re not in any rush to buy, and in the meantime, we’re just putting money in CDs.

If we miss the “bottom” by a few months, so be it, but we’re certainly not going to let some NAR scare-tactic goad us into buying before it makes solid financial sense.

By: Eddie

Eddie — Wed, 08 Oct 2008 21:17:09 +0000

I agree with David, the NAR has been warning us about missing the bottom since August of ’07. Lately it’s been “interest rates are on the rise, better buy now.” Hilarious.

To answer the question, no. A lot of the listed prices have been worth nothing more than a good laugh lately. When I make an offer, it will be reasonable based on comparable sales and trends. I don’t care if it’s 15% below asking. I’m fortunate in the fact that I’m under no pressure to buy. If they ignore me, fine, I’ll watch the value continue to decrese, like I have been for the past year, and then come back with an even lower offer.

By: Gene

Gene — Wed, 08 Oct 2008 19:54:48 +0000

I’m interested in seeing just how many of those pending sales actually close. I’ve heard about a lot of deals falling through lately due to financing (of course). The next few months will really tell the tale, and I don’t think it’s going to be a positive one (no matter how many realtors say “now is the time to buy”).

By: David

David — Wed, 08 Oct 2008 19:46:14 +0000

That NAR, I tell ya, better than Seinfeld for laughs!! Two to three percent?? Good luck with THAT!