Well Saturday the Ann Arbor news revisited some of the stories it carried for several weeks this morning. It was a update on whether the people had sold their homes since last interviewed. Some had, some hadn't, most have had to reduce their prices to get them sold.
I always tell my sellers and buyers, " Market value is what a buyer in any given market is willing to pay for your home given the current conditions, what other homes are available and who is looking at the particular time." I correlate it to a credit report, it can change frequently and it just depends on when we take a snap shot of it.
Even in a slow market, we sell homes. According to the Ann Arbor Board of Realtors data, of which I am starting my 5th year as a Director, our lisitngs are up 61% and sales are down 10% from 2005 to 2006. Now there is no way to weed out the re-listed properties that either 1) expire 2) sellers change realtors 3) or the realtors try and fool everyone by lowering the price and re entering it to get a fresh MLS number. So, we really don't have a 61% increase in the true sense of the word.
What I noticed in the market was that your house ABSOLUTELY had to be "priced to sell". I sold a home in a neighborhood in June for 380,000. It sold in 4 days and was listed at 385,000. It was owned by a decorator and the colors were wild. Her daughers bedroom was orange, purple in the gathering room. Nice home, on a cul-de-sac. But, obviously the new owner had to paint etc.
Because I sold so quickly the neighbors 2 next door trying FSBO, called me. There house was in much better shape, neutral decor, better floor plan. I listed it at 398,000. ( Their price as a FSBO) This was at the end of July, then we reduced to 389,900. Then we reduced to 385,000. We had 5 offers on it all around the 365,000. mark. I sold my sellers on offer number 5.............Look, the market has spoken. We closed on Dec 28th for 367,000.
Better house, more ammenities, next door, same square footage, both with finished walk-out LL. Go figure.
I think the market shifted towards the end of July and we were caught in the down turn again.
I will close on a good note, because as I have previously said before when Ann Arbor gets a cold, the rest of Washtenaw County gets pneumonia. The good news is that 26% sold at or above asking price. That is one out of every 4 homes sold. 
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