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Can’t We Just All Get Along?

I had a conversation with a potential home seller who conversationally wished the “gripers” (his word) about what they’d lost with Madoff would use “real numbers”, as they only lost what they had actually invested, not what their balance sheets showed after Bernie did his magic.  But yet this homeowner was fixated on how he “lost” $200,000 by not selling his house in 2007, and didn’t see my point at all that his purchase in 1989 for $185,000 meant he’d still be making out OK if he got near the listing price the agent suggested of $599,000.

Then I read on-line about a study which supports what I already know about sellers believing they are being ripped off, while buyers are convinced prices will drop even lower: http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20090309/REG/903099985

HomeGain.com Inc., based in California, found that “63% of homeowners said their homes should be listed at higher prices than what their real estate agents recommend, while 59% of buyers believed homes are still too expensive.”

45% of the sellers thought their homes should be selling for at least 10% and perhaps as high as 20% more, plus an additional 14% felt they were underlisted by 20-30%!  A still more delusional 4% thought they should be getting more than 30% above the listing price (and no deal lately is ever reached at the asking price).

Bargain seeking buyers thought homes were overpriced by up to 10% (21%), 10-20% (32%), and 6% were hopelessly optimistic, thinking housing prices were inflated over 21%.

With 14% of sellers believe their homes are priced fairly, and 18% of buyers thinking the same, it is very easy to see why so few transactions come about.  The study said while a whopping 90% of homeowners realistically acknowledged a housing market decline, they drew distinctions as to why their home should not be among the fallen (their numbers must be included in the 11% of survey respondents who predicted home prices will increase in the next six months).

Here’s the bottom line:  if no one shows up at your door to even look, you’ve listed your home too high.  If there’s a line around the block, you have my permission to re-examine your list price to determine if it is too low.

***

Have a wonderful weekend!  Spring & WBC baseball is underway, the Knicks are playing like a team, the Rangers have life in them, and for those of you who love college hoops, this is your time.  If you’re not sports obsessed like I am, I am sure you can find something to occupy your time…

Comments

( 2 comments — Leave a comment )
(Anonymous)
Mar. 13th, 2009 01:05 pm (UTC)
That is very accurate. Every homeowner claims their house is different and the best, even if it is in a 55+community where all are the same! I know there's emotional ties to a house but fer crissake work with your agent people. We don't want to earn less so we won't underprice your house, but if you get insulted and go with the agent who'll list for more don't be surprised when you have no viewings.
real_lawyer
Mar. 13th, 2009 03:06 pm (UTC)
I cannot argue with your advice.
( 2 comments — Leave a comment )

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