Posted by Scott on October 20, 2003, 9:44 pm
I'm looking around SE Massachusetts currently. The market has definately
slowed from all accounts in this area. I'm currently looking at one home
that has been for sale for almost a year. It's still listed at 10% more
than a house that sold two doors down that has unobstructed ocean views on
every floor. This house has a small view of the water up on the third floor
which isn't even finished-and even there in only one room. The realtor
seemed stunned when I indicated that I thought the house was ridiculously
overpriced, had a burnt up lawn and even though it's almost brand new, had
visibly peeling paint outside and worn rugs from dogs.
To put it in perspective, the owner bought the place new for 400,000 in late
2001 and is now asking 600 a year and one half later. In the same
development a fully finished three story with pool, bigger yard that is
perfect, and a mahogany deck is on the market for $499.
Is there any ryhm or reason to the MLS listing price or is it totally the
whim of the listing realtor? Asking for 50% appreciation just seems
ludicrous.
Posted by Jeff Smith on October 20, 2003, 10:29 pm
The MLS listing price is what the owner is asking, plain and simple.
Sometimes a realtor will tell a seller they are asking too much, but it
doesn't hurt a realtor to take on an overpriced house, and generally the
market will catch up eventually anyways.
Every seller has different goals. One might put his house up just to see if
it would sell for his "magic price". They may have no other motivation to
sell, while another may have many reasons to sell, hence a lower asking
price.
Has the seller dropped the price at all over time? Those are indications of
a seller who wants to sell. You can always make an offer and have it
accepted or rejected. Perhaps the other house was a distressed seller. There
is no "rediculous" when it comes to appreciation. Here in Las Vegas a friend
of mine who bought a house 12 years ago for 90k, it is now selling for 500k.
Sure it's been 12 years, but that is 5.5x appreciation. It's simply what
people are willing to pay.
-Jeff
> I'm looking around SE Massachusetts currently. The market has definately
> slowed from all accounts in this area. I'm currently looking at one home
> that has been for sale for almost a year. It's still listed at 10% more
> than a house that sold two doors down that has unobstructed ocean views on
> every floor. This house has a small view of the water up on the third
floor
> which isn't even finished-and even there in only one room. The realtor
> seemed stunned when I indicated that I thought the house was ridiculously
> overpriced, had a burnt up lawn and even though it's almost brand new, had
> visibly peeling paint outside and worn rugs from dogs.
> To put it in perspective, the owner bought the place new for 400,000 in
late
> 2001 and is now asking 600 a year and one half later. In the same
> development a fully finished three story with pool, bigger yard that is
> perfect, and a mahogany deck is on the market for $499.
> Is there any ryhm or reason to the MLS listing price or is it totally the
> whim of the listing realtor? Asking for 50% appreciation just seems
> ludicrous.
Posted by 127.0.0.1 on October 21, 2003, 12:30 am
>Is there any ryhm or reason to the MLS listing price or is it totally the
>whim of the listing realtor? Asking for 50% appreciation just seems
>ludicrous.
the owner can ask for any price he likes, MLS is a listing service
they don't have anything to do with how a home is priced
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Posted by v on October 22, 2003, 4:07 pm
On Tue, 21 Oct 2003 01:44:53 GMT, someone wrote:
>To put it in perspective, the owner bought the place new for 400,000 in late
>2001 and is now asking 600 a year and one half later. In the same
>development a fully finished three story with pool, bigger yard that is
>perfect, and a mahogany deck is on the market for $499.
What the seller paid has nothing to do with it. Suppose he way
overpaid back then, does that mean you would too. The only factor
that counts is what other competing homes can be bought for. Why are
you even bothering to give thought to this overpriced house, go buy
the other one whch has a pool, bigger yard, finished 3rd story and is
CHEAPER.
It is not your job to "convince" this seller that he is asking too
much. The market will do that as other houses are sold and his sits.
He may take his place off the market, you don't say what his
motivations are, he may only be interested in selling at "his" price,
if he can't get it he will keep it, or he may really want to sell but
be so much in debt that unless he gets that price he might as well
declare bankruptcy. There are many scenarios. If you want THAT house
you'll apparently need to pay that price, but why would you, just buy
a different house.
>Is there any ryhm or reason to the MLS listing price or is it totally the
>whim of the listing realtor? Asking for 50% appreciation just seems
>ludicrous.
The Seller sets the price after consultation with the broker. The
Seller doesn't always take the realtor's advice, and/or some brokers
are not very skilled. Brokers (like any commission people) generally
prefer low priced listings that will sell quickly with little effort;
they make more selling 4 at $400k than 2 at $450k in the same period.
But they don't always get what they want either.
The "average" relationship of listing to sales price makes no matter
in a particular case which might be an exception. And it really makes
no difference whether you or they think the pice is based on either
"appreciation", upgrades or which way the wind is blowing. All that
matters is the competition.
-v.
Posted by Tomes on October 25, 2003, 11:21 pm
Offer them what you want to pay for it, it is that simple. If they laugh
you off, move on.
I offered $30,000 less than a listed price and got laughed off, then months
later it sold for that price. I am in a better house for cheaper anyway.
Do what you want, not what they want.
Tomes
: I'm looking around SE Massachusetts currently. The market has definately
: slowed from all accounts in this area. I'm currently looking at one home
: that has been for sale for almost a year. It's still listed at 10% more
: than a house that sold two doors down that has unobstructed ocean views on
: every floor. This house has a small view of the water up on the third
floor
: which isn't even finished-and even there in only one room. The realtor
: seemed stunned when I indicated that I thought the house was ridiculously
: overpriced, had a burnt up lawn and even though it's almost brand new, had
: visibly peeling paint outside and worn rugs from dogs.
:
: To put it in perspective, the owner bought the place new for 400,000 in
late
: 2001 and is now asking 600 a year and one half later. In the same
: development a fully finished three story with pool, bigger yard that is
: perfect, and a mahogany deck is on the market for $499.
:
: Is there any ryhm or reason to the MLS listing price or is it totally the
: whim of the listing realtor? Asking for 50% appreciation just seems
: ludicrous.
:
:
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> slowed from all accounts in this area. I'm currently looking at one home
> that has been for sale for almost a year. It's still listed at 10% more
> than a house that sold two doors down that has unobstructed ocean views on
> every floor. This house has a small view of the water up on the third
floor
> which isn't even finished-and even there in only one room. The realtor
> seemed stunned when I indicated that I thought the house was ridiculously
> overpriced, had a burnt up lawn and even though it's almost brand new, had
> visibly peeling paint outside and worn rugs from dogs.
> To put it in perspective, the owner bought the place new for 400,000 in
late
> 2001 and is now asking 600 a year and one half later. In the same
> development a fully finished three story with pool, bigger yard that is
> perfect, and a mahogany deck is on the market for $499.
> Is there any ryhm or reason to the MLS listing price or is it totally the
> whim of the listing realtor? Asking for 50% appreciation just seems
> ludicrous.