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Are homes selling, at higher prices than you would expect, or what?

Today was a nice day to get out of the house and go to a couple open houses within our neighborhood. We found both homes were over priced by at least ten thousand dollars. Our neighborhood is holding strong on sales, but not within the price range they are listed at. Most homes have sold very quickly as they were priced accordingly. Priced to sell in this market we are competing in. People are still out there looking for "the best deal" and not over priced real estate.

The analysis of homes selling within our area is at the price they sold for three to six years ago. I know the market is believed to be coming back, but it is not even close to the listed prices now being offered.

Now...on the other hand if we are wrong in our thinking, we will be placing our home on the market and take advantage of this wonderful gain of equity that has come back. I just don't think I am going to hold my breath too long.

What is happening in your communities, we would love to know.

Posted by Bob Sloop, Consultant, Indianapolis, IN on 04/05/2009 02:19 PM

Comments (8)

are homes selling, at higher prices than you would expect, or what

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8 Comments on Are homes selling, at higher prices than you would expect, or what?

APR

I have run into some sellers that look at the recent sale prices, and think their home is better, so it must be worth more. They don't realize the other sellers had also taken care of their homes. Our area seems to be leveling out, but it remains to be seen if the values will drop any further.

Not many of our resales are selling - so pricing seems to be like cooking spaghetti - toss it at the wall and see what sticks.... not working very well

APR

Lisa, I agree with you totally. Values have gone down, not up in the last four years plus. These homes that are over priced are not going to sell in most cases. Time will tell within this year.

Thesa, I know that feeling quite well. We are contemplating on selling our home, but we have a repo right next door to us. We would have to compete with this home and lower our home under the price the repo is selling for just to move it. Great seeing you back too.

Hello Bob, the homes we are staging are selling however they are selling at market value, not at what folks would like them to sell at (2006 prices). Our statistics are telling us that just as it has always been, the homes that are priced right according to market value, are in good condition and are merchandised well (Staged), are the only ones that are aggressively competing in this market, and they are selling. But there are a ton of homes out there that just are not competitive and they just linger on the market and eventually slip into the old black hole of expired listings.

By the way Bob, any idea what the expired rate is running these days?

APR

Some sellers will not budge on the price...so there house sits on the market. Eventuallly, they start lowering the price..and lowering the price..

Hi Bob - Totally agree with your analysis of home prices at 5-6 years ago. Just spend an hour last night with a selling client who bought in 2003. I have been stressing that the price he paid to buy is sadly the same price it is going to take to sell.

Hard to get them to accept the fact that after 6 years of ownership and then commission that they will pay, they will walk away with a net loss.

APR

Hi Gary, good information added here, thank you. Expired rate question is a good one. I would think it would be determined on what market place we are talking about, I can say for the Indy area it is taking from a three day sale, which happened in our subdivision just last week, to over two years. I think listings are just being turned over and over at times, it is incredible.

Rebecca, I agree, and in a way, this could be a good thing if everyone did just that. The market has to come back some where. I know we cannot fight the foreclosure rate, but we could keep non foreclosed homes listed at a price of either pay me or not. I agree totally, in today's market we need to be realistic and list homes by what the market holds. I hope I came across ok on my thinking here, help me out a little, LOL.

Hey Sharon and Greg, Yessss it is hard for any one of us, me and you included to choke this one down. Do you know how many repos out there really make up the percentage of listings on the market nation wide? If it is ten percent, or less, which I am just throwing out there for discussion, then why are we having to lower the price just because of a few, "bad apples in the bag?" Make sense? Again help me out here...I need all the help I can get. Just food for thought.

I received a call today from someone with big expectations of what her house would list for.... She did NOT want to hear the numbers from comps.... and we refuse list at an uncompetitive price....

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