Market Regression Hurts Seller !

By
Real Estate Agent with 10 YRS with Active Rain ! Illinois # 475.138548

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

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Home Selling
Tags:
highest price
seller equity
market regression

Post a Comment
Spam prevention
Spam prevention
Post a Comment
Spam prevention

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
110,914

Mike Schneider

ABR, CDPE, SFR
Just-Ask-Mike
*
*
*
*
Spam prevention