According to MSNBC, Homeowners and Sellers, continue to struggle to "get real" with their home values. Despite continual media accounts disclosing the dismal housing situation and reports demonstrating plunging home values, some owners and home sellers, hang onto inflated expectations of value.
MSNBC reports agents across the country are experiencing difficulty convincing sellers the true market value of their homes.
The interesting article, worth reading in it's entirety, is posted at:
I agree Myrl I have one listing right now where we are chasing the market down.
Yes, it's really important to price AHEAD of the market, now and always. Thanks for the read.
I find this true here in Connecticut. I now send them to websites to confirm what I am telling them. They just cannot believe it. My sellers do receive cma's from me, and a statistics report that shows them the activity, going back 3 months or 6 months. Still, oh no, not my ...... It's just very difficult. The glory days of making huge profits are gone. The buyers are waiting for prices to fall more and the sellers think the longer they wait, that someone will just fall in love with their home enough, to overpay for it? Thank you for the link. I did read the article, so true.
As a New York Real Estate Appraiser I can tell you that so many homeowners are either living in denial or just too hopeful. Prices are not falling that much here in Westchester County but the inventory continues to rise...which will ultimately lead to lower values. I read an interesting article which compares annual income increases to anual home value increase. It basically says that home values have significantly outpaced income increase during this cycle and that the market won't be stable until there is more balance between the two. Its a great read......here is the link via my website.
http://www.grecoappraisalservices.com/MyBlog
Christopher Greco
New York State Certified Real Estate Appraiser
John - I've been in that position with chasing the market down, with a listing. It isn't fun :-(
Vickie - You're right - It's very important to price AHEAD of the market.
Frances - I think it's hard not only for Sellers to believe it, but for many of us. I'm glad I do not need to sell my home currently. The other day I ran it through Zillow, and about fainted. I purchased many years ago, but feel for my neighbors, some of whom have purchased in the last few years or so.
Christopher - Yes, many are living in denial or fantasyland. That won't work in the current marketplace. I also feel however that the banks have contributed greatly to the reduced values, by dumping prices on foreclosure properties to get them off the books. And there is a difference between a trashed out abandoned home, compared to one that is in good condition, and well maintained. However, it doesn't often show up, when square feet, and location are such a large component to creating comparable sales data.
Myrl... Thanks for the link to the article and I agree 100%, it is very difficult for folks to get real...
The tax man needs to "Get Real" too. In Maryland our taxes have not decreased with home values heading into the can!
There is truth to the article. Sellers want to hold on to high expectations for their price and tend to resist reductions. The bottom line here is that homes priced too high in this market will not sell. Some people do understand the direction home values have gone but are in a difficult position in terms of what they need to get out of their home - however, they will remain on the market also. Homes are selling in this market but generally you will find the ones that sell to have been priced correctly.
Debbie - I was speaking with a person a few days back, who purchased an upper-end home 5 years ago. He put 25% down when he did so. His career has moved him from the West Coast to the East Coast. He has had his home on the market for over a year, and watched values go down, in the process. He has dropped his price considerably. At this point to drop it further, would be to put him upside down in ownership. He feels he has only 2 choices - (1) To hand the keys to the bank. The bank won't renegotiate his loan with him, because he is current on payments. (2) To continue to throw good money after bad, which he really isn't in a position to do. He's almost not in a position to "get real." I wish I had a perfect solution for those folks, who did all the right things, but find themselves in this predicament.
Ellie - You're right, the tax assessors are slow to react to the drop in values. I think because many municipalities and states are having budget issues of their own, they are reluctant to reduce assessments.
Jon - There is a lot of resistance out there. There's no doubt about that!
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