Is the new construction killing the existing market?

By
Real Estate Agent

DISCLAIMER:  The views are expressed in this blog are simply that, MY views (and factual information from the local MLS).


I consider myself to be a very thorough Realtor.  I enjoy previewing each new house on the market (all listings, not just the listings that my company has).  I also really enjoy studying the market trends in my local area.  I find that it helps me to do better BPOs and CMAs.

In my study of different areas, I've especially begun to notice how the new construction in Hunter Pointe is affecting the existing homes when it comes time to sell them.  Living in a military town as I do, I know that some families will live in the homes they purchase for as little as 1-2 years before they have to turn around and sell because they are moving to a different base.  Many times, as well, they owe more than what the home is worth in today's market and they try to sell the home for the more than the market analysis shows that it's worth.  (I also find that many of these sellers initially try to sell FSBO)  Sadly, these homes also seem to "sit" on the market longer than the new construction, as well.

So what does someone do in this situation?  Do you try to get those sellers to rent out their homes in order to build more equity (or even until the construction ends in the Hunter Pointe Addition)?  If they wait, well, that is less homes for the Realtor (myself) to list, but if they sell now, they might lose money or have to wait a long while until the "right" buyer comes along that is a perfect fit for the house.  I feel that with the right marketing and the right sales price on the existing homes, I can sell them fast and show you that the existing market IS NOT DEAD!

My home is in the Hunter Pointe Addition of Altus, OK!  Won't you let me show you the best way to sell YOUR Hunter Pointe home?

Posted by

 ~~~~~~~~~~~~~~~~~~~~~~~~

Renae Pretty, Realtor ~ Main Realty of Altus

Call me for Altus and Altus AFB area homes for sale ~ (580) 480-5601

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Comments (6)

Chuck Carstensen
RE/MAX Results - Elk River, MN
Minnesota/Wisconsin Real Estate Expert

Its about pricing at or normally below the market!  If you live there then you are a great choice to work with!

Aug 02, 2011 04:30 AM
F U
nobody - Alamance, NT
Dead

I do agree with your points. Building new homes when 100's sit on the market seams like breeding puppies when 100's sit in shelters. Don't make more than can be housed, spay and neuter the builders.

Aug 02, 2011 04:32 AM
Team Honeycutt
Allen Tate - Concord, NC

New homes are definitely competitive to our existing homes. Some of them here in our area are offering a lot of incentives to make them sell.

Betty

Aug 02, 2011 04:32 AM
Kim Delia
Remax Professional Associates - Charlton, MA
Realty Delia Group

The market today is surley in existing properties from my experience and not new construction...material and labor is still highly priced that is why buyers are taking advantage of the existing homes on the market which are at an extreme low...all the best selling real estate.

Aug 02, 2011 04:32 AM
Deb McNeill
Flying M Team Small World Realty Fort Worth, Tx - Fort Worth, TX
Fort Worth Real Estate

The siren call of 'new' seduces a lot of buyers, even at a higher price. Just like buying cars, though, the true, best value seems to be in a gently lived in pre-owned home.

Aug 02, 2011 04:38 AM
Renae Pretty
San Antonio, TX
GRI, e-PRO, MRP

I have used some of the homes that might be slightly newer in the area in CMA's that I have done.  I think, as well, that they are comparable.  I don't always see the appeal of the brand-new homes versus the gently pre-owned homes.  I think that many of the pre-owned homes look better and have beautiful upgrades to them.  That is what I want to be able to show the public here in Altus and sell them on.  Thank you all for the comments and and wonderful words of wisdom!

Aug 03, 2011 05:30 AM