MR. and MRS. SELLER. YOUR HOME IS WORTH WHAT YOUR HOME IS WORTH TODAY, NOT WHAT IT WAS WORTH IN 2005.

By
Real Estate Agent with Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate 303829;0225082372

WHY CAN'T WE SELL OUR HOME FOR A PRICE AT THE 2005 LEVEL??

BECAUSE HOME PRICE are down to the 2003 levels.    THAT'S WHY!!

The composite-20 index, seasonally adjusted is 140.76 and comparable to May 2003 levels (ignoring 2009). Not seasonally adjusted the composite-20 index is 141.30, which also is slightly above May 2003 levels. . .  MORE HERE..

This post inspired by Betty and John Knowles. 

HOMES WILL SELL.  However, the complex matter of pricing a listing for a home for sale takes an experienced real estate listing agent.  An agent who knows how to think like an appraiser and is not afraid to do the research to provide you, the home owner/seller with the facts you need to determine a price range.

What do appraisers consider when pricing a home??  They consider the location, square feet, amenities, upgrades, condition and compare these features with homes that have SOLD and settled in the same general area in the past 3-6 months.  Appraisers may also consider the SOLD price of distressed properties.  Sad but true.  Fact is, in some areas, distressed sale may BE THE MARKET.  Agent Bob

THAT'S IT!!  The appraiser has no interest in what you paid, what you want out the house, what you need out of the house, how much you paid for the upgrades and one thing for sure, appraisers know the difference between replacement of items for maintenance in which case, you get virtually no value as an upgrade.  Some things just do not add value no matter what the cost was to you.

Listen to your listing agent.  Pay attention to the Competitive Market Analysis (SOLD information) they provide.  Drive by some of the SOLD properties.  If you are not willing to sell for the market price for today, you may wish to wait and list later. 

SOLD IN PRINCE GEORGE'S COUNTY, MD
August 2003, average SOLD price - $207,823
August 2005, average SOLD price - $320,914
August 2011, average SOLD price - $207,823

SOLD IN LOUDOUN COUNTY, VA
SOLD in 2003, average SOLD price - $464,296
SOLD in 2005, average SOLD price - $731,698
SOLD in 2011, avarage SOLD price - $537,254

FACT:  2005 home prices were in a market with low interest rates, buyers hungry to buy and sellers taking their equity and buying up.  Interest rates in 2005 were the lowest in about 8 years, 5.8% and buyers were taking advantage of an opportunity.  Appraisals were easy because prices were skyrocketing. 

FACT:  2011 home prices are at their lowest since 2003 and may never recover to the 2005 price levels.  While interest rates are lower still, 4% average, the economy is depressed and unemployment is very high. 

LOOK AT THE SOLD PRICES FOR YOUR AREA FOR TODAY, NOT 2005.

Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

A MESSAGE FOR HOME BUYERS IN LOUDOUN COUNTY, VIRGINIA.  Lenn Harley
1% REBATE from Homefinders.com to home buyers in Loudoun County, VA. 

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Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988.  HELP FOR HOME BUYERS IN LOUDOUN COUNTY VIRGINIA REAL ESTATE.

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Rainmaker
1,560,086
Mike Cooper, GRI
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

Lenn, this is a story that is playing out everyday in this area.  And of course you always hear, but so and so sold for 10% above what they bought their house for.  Really?  When did they buy it?  1989.  Oh.  Listen to your agent.  They actually have an insight into the market!  Suggested!!

Sep 29, 2011 06:59 AM #1
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Andrea Swiedler
Berkshire Hathaway HomeServices New England Properties - New Milford, CT
Realtor, Southern Litchfield County CT

Lenn, this is (one of) my biggest beef(s). We are currently at 2001 prices here, let's see where the year takes us at the end.

No matter how bad we want it to be different, it isn't. Either price it right or don't sell now!

Sep 29, 2011 07:12 AM #2
Rainmaker
633,268
Holly Weatherwax
Associate Broker, Momentum Realty - Reston, VA
A Great Real Estate Experience

What a seller wants or needs is immaterial.  I see people listing everyday at 'see what will happen' prices. It is not a mystery; your house will sell for market price. The sooner the seller understands what the market price is, the sooner they will sell.

Sep 29, 2011 07:14 AM #3
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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Mike.  Thanks.  The facts, just the facts.

Andrea.  Indeed.  If the sellers are not going to accept an appraisal for today's market, they shouldn't be trying to sell.  We can't change the market.

Holly.  BINGO!!  Hard for some sellers to grasp.

Sep 29, 2011 07:27 AM #4
Rainer
1,756,848
Conrad Allen
Re/Max Professional Associates - Webster, MA
Webster, Ma, Realtor

Hi Lenn - I think the 25-30% drop in values are consistent with our area.

Sep 29, 2011 07:43 AM #5
Rainmaker
433,582
Kristine Ginsberg
Elite Staging and Redesign, LLC - Short Hills, NJ
NJ Home Stager

Lenn - I think it's a great idea for a seller to go look at recent homes that have sold at their price point. My neighbor just put his home on the market and I know what homes are going for in my town by checking MLS and seeing them when I drive by. When he told me the asking price I almost laughed out loud. It is so over priced it's beyond ridiculous. I had to ask, "so do you think you'll get that price?" He said he had put a lot of work into it and that it's around the price of another home that sold on our street. 

That "home" he was talking about were friends of ours and is was twice the size literally (I've been in both homes) and has 3 times the property, not to mention it was also updated they still didn't get their asking price. It amazes me that people will ask for a price that nobody in their right mind would pay. (sorry I wrote a book, but I had to tell you that story!) SUGGESTED!

Sep 29, 2011 08:26 AM #6
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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Conrad.  Actually, we have many markets.  I selected one county in MD and one in VA.  Some areas of our market, Arlington VA has held value very well.

Kristine.  Thanks for your "story".  Loved it because it's so typical of the thinking of many, many buyers.  They have absolutely no objectivity.

 

Sep 29, 2011 09:22 AM #7
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Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Lenn- I had to suggest this one!  My husband is a builder (new homes) and we have moved many times so drummed into my head is what he always says " a home is worth what someone will pay for it."  I doesn't matter what you paid for it... it's what someone is willing to pay for it today based on today's market and conditions. 

Sep 29, 2011 09:32 AM #8
Rainmaker
3,223,164
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Lenn, this is so sad but True. the worst part is that the middle class is suffering more now than ever before.

Sep 29, 2011 10:29 AM #9
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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Kathy.  He is absolutely right.  I tell buyers when they want to make low-ball offers that "the seller determines the listing price".

However "The buyer determines the SOLD price".

 

Sep 29, 2011 10:45 AM #10
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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Endre.  Sadly, there is no one in any position of influence, authority or media that has a clue about the state of the real estate industry. 

I've heard all of their soundbites and have determined that "we are doomed".

 

Sep 29, 2011 10:48 AM #11
Rainmaker
830,410
Broker Nick
South Florida Real Estate & Development, Inc. - Coconut Creek, FL
Broker Nick Relocation Broker Service

Lenn - Yep,Yep,Yep...that is all that can be said to this thoughtful and truthful post. What someone was willing to pay for the property in 2005 is a far cry from what the same person is willing to pay for the same property in 2011...

Sep 29, 2011 10:51 AM #12
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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Nicholas.  Thanks.  If the present state of the real estate industry is what it is to agents and brokers, can you imagine what it's like to sellers??

Sad, sad, sad

Sep 29, 2011 10:55 AM #13
Rainmaker
1,051,955
Bill Gassett
RE/MAX Executive Realty - Hopkinton, MA
Metrowest Massachusetts Real Estate

People just don't seem to get how bad things are. The sad part is they are probably going to get worse before they get better.

Sep 29, 2011 02:25 PM #14
Rainmaker
717,706
Ruthmarie Hicks
Keller Williams NY Realty - 120 Bloomingdale Road #101, White Plains NY 10605 - White Plains, NY

Hi Lenn - Keep saying it - It's hard for sellers to understand how equity can evaporate just like that - but if they need to sell, they have to deal with the reality.  Its really sad for those who have to sell.

Sep 29, 2011 04:28 PM #15
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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Bill.  BINGO!  People do not.  I agree that things are still deteriorating.  The government is simply digging the hole deeper.  They are institutionally incapable of managing the economy in a responsible way.  Corruption rules.

Ruthmarie. INdeed it is.  Most home owners can only focus on what they have to do and that is sell.  If the sale is discretionary, perhaps they should not.  If the move is mandated by work, they will lose everything.  That's just a fact of the miserable economy.

Sep 29, 2011 10:49 PM #16
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