Posted by: Catherine | February 29, 2008

‘Regular’ sellers aren’t keeping pace


Wow, its tough out there for a ‘regular’ seller.  What is a regular seller?  Its one that isn’t a short sale, isn’t a REO and isn’t in distress.  They just need, or want, to move now.  Most areas have some serious competition from distressed sellers and the prices are getting lower and lower on those.  I know that when we price our short sales, if priced “right” we get offers, and often multiple offers.   Sometimes it almost seems like an invisible line in the sand.  We can’t see it.. but what will make a buyer react?  We had a home priced at 399k.  Nothing happened.  Few showings, no offers, nothing.  We dropped to 350k and got 3 offers in a week.   Same thing with another.  Priced at 499k, nothing happening until we dropped the price to 450k and got 2 offers in a week.   Larger price drops are becoming the norm.  Dropping your price just 1% or even 5% is hardly making buyers take notice now.  Here’s one reason why:  The median price for bank owned homes is 24% LESS than the median home sales price. 

Take a look at this graph from Trulia:  http://images.trulia.com/resources/Trulia_Trends_Report-February_2008.pdf

Says alot doesn’t it?  Its a vicious cycle.  Why would you pay upwards of 25% more on a house when one down the street is so much cheaper?  For most, you wouldn’t.  So it almost makes the regular listings “unsaleable.”  If you don’t have to sell now, perhaps rethink it.   There are so many agents listing short sales now that simply don’t know what it takes to get a short sale approved with the bank(s), that makes those almost unsaleable.  And agents are getting gun-shy at even showing short sale listings.  But in the hands of the right listing agent, and the right negotiation team a short sale can be an excellent opportunity for the right (patient) buyer.    If you have to sell a home that you owe more than the home is worth in today’s market, call us.  If you are upside down, call us for your options.

We are foreclosure avoidance specialists.  We can help you with a short sale, or refer you to someone who can help with a loan modification or information about deeds in lieu of foreclosure. 

Catherine Myers
Contra Costa Real Estate and Walnut Creek, Concord Homes for Sale
925-683-2125

Terry Osburn
Pawsitive Real Estate and Homes for Sale in Contra Costa
925-381-9944


Responses

  1. Yes, there are a lot of strange things happening in the markets with so many foreclosures happening at once after such a huge run-up in prices. People who just want to move or upgrade or change jobs or leave a bad neighborhood have to compete with those who don’t even care about making a profit from their home. That means regular sellers are at a huge disadvantage right now, and may remain so until some of these foreclosure properties are sold to new buyers. But even then, there’s no guarantee that regular sellers won’t owe much more than their homes are worth. It will be interesting to see how long the markets take to recover to their pre-crash levels. Some may never recover.


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