The "Highest and Best" of the neighborhood can weaken Seller's Net Equity due to "Market Regression". Among other reasons as well.....
It happens, anywhere and who knew when they built this beauty back in 1995 when local market value was appreciationg at 6%+ per yr.
I have always heard..dont purchase the highest price on the block for there would be no where to grow.
Well, this 5100 sq ft beauty got kicked and beaten up by consumers while on market this season. It did sell, but due to Market Regression, the value was lost for the immediate neighborhood was loaded with smaller and less valued, less luxurious homes. That contributed to an aprox 20% loss of value. After all said and done it did sell as "highest and best" for the prior 10 yr period....but "Market Regression" clearly defined the decline.
The avg Sold was aprox $100000 less, and that's where our challenge began ! Two issues came into play ! Seller Motivation and Seller understanding of local market trend ! But that's another discussion ...... thanks for reading !
Happy and Safe Independence Day to "Active Rain"....
Mike Schneider, ABR, CDPE, SFR