As cited in yesterday's article, almost 60 homes in College Station and Bryan have had their asking prices slashed in the recent months since the Homebuyer Tax Credit expired. Though we are certainly seeing the effects in our own community, this is a national trend that continues to grow with the passing summer months.
For example, Trulia.com reports that Southern California (one of the most expensive real estate areas in the nation) has seen its real estate landscape littered with high-profile price drops. Nicolas Cage's English Tudor in Bel-Air has been reduced an amazing 50% to $17.5 million. Suzanne Somers' home, which started at $35 million over two years ago was eventually slashed to $12.9 million.
Granted, we are not seeing such drastic price cuts locally as we do not have listings of that amount or popularity here in College Station. The listings in our area range from mid-priced luxury homes to those on the low-end. Unfortunately for College Station home sellers, these are the properties most affected by the popped housing bubble. This is due in large part to the fact that sellers of these properties have had to compete with the increasing number of cheap foreclosures entering the market. Now sellers of homes on all market levels are forced to face the reality of the current real estate situation.
Bear in mind, this does not mean that sellers can't get a good deal. On the contrary, a seller who works with an enthusiastic agent will certainly be able to achieve their goals in any type of market. When determining an asking price, a good agent starts by evaluating the prices of comparable recent sales in the area rather than looking at the prices of active listings. (This ensures a satisfactory deal for both seller and buyer; the seller will be much more likely to complete their transaction in this climate, and the buyer will be getting a fair deal based on current trends.) For reference, take a look at my recent posts based on the list vs. sold price in College Station neighborhoods; I examined both Pebble Creek and Indian Lakes to show how the current trends affect home sales in our town.
The important thing to remember is that a slow market does not equate to an impossible one. If you are a seller in College Station or Bryan concerned with getting a good deal on your home, please contact me so that we can discuss the basics. I can be reached anytime at (979) 255-1839.
Clay Lee - Realtor
Century 21 Beal, Inc.
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