The Rootin' Tootin' Rollbacks of Real Estate

I like your comparisom.  Neat video for the holidays, but...... where did the Naked Blogger come from??

I don't know.  Roll backs have a negative connotation for me. I think we need to concentrate on value rather than price.

Mel, I guess it's lucky for WalMart that their customers have a different mindset than homebuyers!

Hi Mel - I think people have to get that home ownership is a long-term investment and it will have fluctuations in market value, but over the long haul (and even the short haul) it will pay off.  By the way, I like your video--I would never have guessed that you are a grandmother!

Mel, how much rollback does a buyer need before they're rootin' tootin' lootin'?

"Isn't it incumbent upon us as Realtors to demonstrate value to our clients, not only in the services we provide, but also in the product we sell?"

Brian

Mel - you bet it's up to us. There are many good reasons to buy now - first and foremost - and at the top of someone's list should be "lifestyle," "personal happiness," and of course a "good investment." Housing prices represent a good value - and as you mentioned, we're in it for the long haul. Buy smart, use a good Realtor and then "let it go."

Life's too short to worry about every damn hiccup. Heck, I don't open my stock portfolio lately - it is, what it is. Thankfully, our home values aren't taking us on that "wild of a ride." :) ( And, my home as seen a $150,000 drop since we purchased it at the height(hype) of the market...guess what? I love my home and my lifestyle...:) )

Oh thank you Mel.  You have just inspired todays post and I was suffering from blogging blues block.  Mwwwwa.

Mel,

Interesting way to look at it as Wal Mart ad.  We have sensed from our own anedotal research as well as our friends in the now that a lot of money is sitting on the sidelines.  These dollars are waiting for either another low or a significant change in governmental policiies etc. 

I agree with Brian that agents can show the value of a property.  In simpler terms when we ran our commercial real estate office in Los Angeles and sold commercial buildings and shopping centers, there was a rational number for a property based on income, vacancy rate, and replacement value....If the replacement value was less than the asking price, that building for all its glory did not sell especially without tenants occupying it....We witnessed a time in Napa, when shacks (not an exaggeration) sold for over a million dollars, and people were willing to rebuild at $400 a square foot...so then the cost of and and building became $1000 per square foot.. So now as the trend goes to value, value, value,,,iyou have rollbacks  or perhaps sanity???A

In January of 2001, interest rates were at 6%.  So they are not only getting house prices at 2001 values, but interest rates at least 2% lower.  A substantial savings when you look at the big picture.  Good post!

Rollbacks are GREAT if you are a new buyer Mel, depressing if you have been in your house as a Seller for ten years or more. Overheated real estate markets in many areas that collapsed and led to so many underwater properties with negative equity. Most homeowners want 'reasonable stability' is what I see, something very hard to come by of late.

Renting with hindsight has proved to be the SMART move with many of these ROLLBACK areas, despite what anyone tells you about all the good things about home ownership. In those rollback areas, home ownership as an American Dream has certainly become the American Nightmare.

It may not be cheaper to own than rent in every town, but it certainly is here! It sure makes sense for those who have good credit.

Mel

Many buyers have a concern about the price roll back, but they like the idea of the value pricing.

Good luck and success.

Lou Ludwig

The price dictates the market.  But for many millions of homeowners they CAN'T sell, so they stay put.  With housing prices dropping the market just stagnates because the current owners aren't going to be able to pull anything out, they resign to stay until the market picks up.  The inventory is off that way, and those roll backs aren't goiing to matter if there's nothing on the market for buyers to buy.  I see this already. Really low inventory and buyers with finicky tastes, more stagnation. Then, toss in the short sales and REO's which lower prices ... home owners with good credit just refinance and stay put. 

Hi Mel, Real estate is local and fortunately our prices here haven't rolled back to 2001 prices! 

At some point the lower priced home loses its value because of rising interest rates.  This is a delicate balance to acheive, finding the place where home values are still low and rates are too.  This won't be forever and many will miss it because they're waiting it out.