I agree with Susan. It's irrelevant whether the seller is counting on proceeds to retire, only matters the market will bear.

Also, take a look at this, small cuts can bleed a seller to death.

http://www.redfin.com/stingray...

While this listing in East SJ is at the heart of the crash, look at what happens when people make too small of reduction

Last Sold in 2002 for 370K

Check out the listing price history

May 16, 2007 $539,000
May 17, 2007 $590,000
Jun 04, 2007 $539,000
Aug 07, 2007 $499,000
Sep 15, 2007 $469,900
Sep 17, 2007 $466,900
Jan 11, 2008 $399,000
Jan 23, 2008 $369,999

Cg:

It's clear that as a seller you're angry with the popping of the housing bubble and like to use selective figures to support your contention that prices shouldn't drop more. While there is evidence that prices actually rose on average last year, they've fallen over 11 percent in RWC since July. There's also little debate as to where prices will continue to go: down. Homes aren't selling at present because prices haven't dropped sufficiently to generate demand. As a buyer, I'm not at all inclined to purchase a depreciating asset when the rental rate of the same home is 2/3s the cost of mortgage, insurance, property tax.

SC - I think that most people have not put their eggs into one basket. My husband and I certainly have other retirement investments, but our hope of retiring early (50 years of age) may be dashed with the drop in our equity (particularly since many of those investments will not kick in until we are 60). While most people will not feel sorry for us, I have witnessed too many of my elders suffer debilitating diseases which precluded them from enjoying their retirement after hitting 65. I am trying to avoid that same fate, and my equity was part of that equation. I am fortunate that this is my worst problem, not losing my home, but all the foreclosures, the subprime debacle, etc. has a ripple effect on many of us that have been good and responsible lendees and homeowners. Yes, I may have to suck it up and work a few years longer, and I just hope and pray that when I can retire, that I will have the health to enjoy it.

Susan,

While there are parts of Redwood City that are seeing foreclosures, by and large the city is doing ok. Prices rose by 8% in ALL of Redwood City last year, and nearly 12% in Emerald Hills. So you'll have to excuse the homeowner for "wasting time" by reading these tea leaves the wrong way.

Also, don't forget that a home that has been on the market for 60-75 days means that it went on the market around November -- not exactly the peak buying season. I don't believe they need to push the panic button in January. April/May, that's a different story.

Why the hell are people figuring in profit from the sale of their house into their retirement??

Didnt they save their money during their career in a 401k or pension plan?

This is a major problem. Another way for the greedy, selfish "me generation" baby boomers to leave their hippie garbage to my generation to clean up.

Speaking as a prospective buyer. There is no difference to me between a $990K and a $950K in term of the pricing in the currently market. I certainly respect the buyers who want to get as much as they can, but if you want to reduce the price by $40K every 3 months, it will get more attention if you reduce by $80K every 6 months. There is no point to "inch" down, you might as well hold firm if you believe in the market.

In this market, if you want to sell, the price has to be what the market will bear. While San Carlos is showing as relatively stable, Redwood City is seeing an increase in foreclosures and people trying to stave off foreclosure, as well as regular folks just selling. Given the competition, 2-4% reductions aren't gonna cut it. If the property wasn't priced right to begin with, it needs to generate interest with bigger reductions. And I am one of those people who is seeing their equity shrivel, a little nest egg that we had hoped would help us in early retirement. Well, early retirement may be out of our reach, given the situation these days. I am one who could afford $40k, but not 100k. so the choice for retirees is stay put until the market gets better, or cut your losses and get out. Seems simple. Dinking around with small reductions is just prolonging agony, IMHO.

It's funny that you're so cavalier about spending other's money! I'm no PhD in math, but last I checked, 4% on a million bucks is $40,000. That buys quite a few lattes at Starbucks. You have to remember that a percentage of folks selling are retirees who are moving out of the area -- while $40K may be chump-change for you, it's what they're going to live on. You must have worked for the IRs in a previous life :-)

Also, bear in mind that both the average and median prices ROSE last year in San Carlos and most parts of Redwood City. So, what motivation would a seller have to leave a bunch of money on the table??? If I wasn't in a hurry to sell, I'd certainly inch my way down the list price scale too.

But, if you're a "sell-it-quick" agent, I guess I can understand why this is beyond you.