It is becoming increasingly obvious to the consumers that the appraisals of their homes vs the cost to replace is growing significantly. When we started hitting a point where current owners realize that the replacement cost of thier homes vs the appraised value is now in many cases 25-30% difference, we are going to see even greater sales issues in the real estate market. From the buyers side that is okay, until they become sellers. This is where the consumer is now starting to close down, not even thinking about selling their home unless the have to. Our inventory numbers changing noticeably in my area. We have about 20% less homes on the MLS today than we did a year ago. More of the homes are distressed sales. When will we change course? We are certainly in an abnormal market, or is the new trend becoming the normal? Appraisers, lenders, help me.
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To all of the Realtors that market some of the "high end" estates. It can be risky marketing the million-plus priced homes. Where do you feel your dollars are best spent? So many that charge high dollars, don't seem to draw many viewers, but, is that just the nature of the higher priced homes?
Give me any ideas.
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