Saturday, June 10, 2006

Sellers: Your Home Isn't Worth What You Think

From ABC News:

How Much Is Your Home Worth?

Over recent months, rising interest rates and increasing inventory have turned the real estate market into one favoring buyers instead of sellers, making it more imperative than ever to price your home correctly, experts said.

For starters, realize that the market has changed and that your home many not fetch as much as it would have six months or one year ago. The house may also take longer to sell in this environment.

"People won't overpay for houses in this market," said Jim Gillespie, president and chief executive officer of Coldwell Banker Real Estate Corp., which has more then 3,300 offices and operates in all 50 states.

Experts advise contacting several real estate brokers to ask them what your home is worth. The agent should be able to provide you with sales figures for comparable homes in your neighborhood to establish a starting point. Make sure they are comparing your home to others with a similar size and characteristics. However, if the most recent sales are over six months to a year old, a seller should consider making a downward price adjustment.
...
Keep your emotions in check when determining a price, experts advised. "Most people aren't realistic (when it comes to pricing their home). It is human nature to think your home is worth more than it probably is," Gillespie said.
...
The worst decision a seller can make is to set the price too high to leave room for downward negotiation. The price can be lowered somewhat, and initially you may need to tinker with it. But generally, homes attract the most buyers in the first few weeks on the market, and if potential purchasers are turned off by an exorbitant price, they'll just go look elsewhere.

Isn't it amazing how quickly psychology has shifted? Can you even imagine reading a piece like this a year or two ago? At this rate the market is going to be unrecognizable by December.

Caveat Emptor!
Grim

22 Comments:

Anonymous Anonymous said...

wow, things do change fast...

Wondering about the renting market in NNJ and NYC? I would think that rents would have to come down as well, as there are a glut of houses that people might rent out and builders are still building as if was the summer of 04.....

I am here in nyc, renting, and I tell ya, within a 20 block radius, over the past 2 years, there has been 5 new building built (or in process) that are strictly being pushed as "luxury condos" with 10 or more floors. We also have alot of housing start ups going on thanks to Columbia Univ. Columbia Univ is really pushing to get the riftraft out of morningside heights and west harlem. They are taking over some buildings. Columbia use to (not sure if they still do) have a program where if you buy an apt from them, they will give you the loan, with an interest rate damn near zero, but you had to be an employee to take advantage of it and they told you what buildings you could choose from.

6/10/2006 08:01:00 AM  
Anonymous Anonymous said...

what would be a good selling strategy for sellers under the current environment? Apparently there are very few, close to none, reasonably priced houses out there.

But by lowering $10k, $30k at a time, would this boost the sales and let seller get rid of the "staled" property?

I think not.. Most of them are at least $150K to $300K over priced, on an $800K property..

6/10/2006 08:30:00 AM  
Anonymous Anonymous said...

Yeah there is a glut of rentals. I sold my condo at peak and renting for about a year or two.

They all have these stringent idiotic policies, especially when it comes to having a dog, but once their rental sits on the market for months and they are eating these costs, they will lower the rent AND let your dog move in too!

6/10/2006 08:47:00 AM  
Anonymous Anonymous said...

I still cant believe how fast the tunes have changed. Def glad i didnt buy last year.

6/10/2006 08:52:00 AM  
Anonymous Anonymous said...

What is with all the 1 bedroom 1 bath condos for sale in Ridgefield?
(NJMLS)

Also, mls# 2610524 (NJMLS), this cat wants 519k for a 2 bedroom 1 bathroom house built in the 50s?

The best part is the silly real estate agent try to sell it as a house with "room for expansion"

These RE agents are so lame. Lame, lame, lame....

6/10/2006 09:05:00 AM  
Anonymous Anonymous said...

The COOOOOOOOLAPSE HAS STARTED!

Don't catch a falling knife.

Buy now be underwater $100's of thousands.

Bababababababa

BOOOOOOOOOYCOTT Houses!

PLUNGEEEEEE

Bob

6/10/2006 10:20:00 AM  
Anonymous Anonymous said...

INVENTORY PILING UP ON THE CLEARANCE RACKS.

Welcome to the new home of Garden State MLS’ public search engine. Currently, there are 30,646 properties advertised for sale in NJ on our site. For Residential Properties that are Multiple Listed with Garden State


PLUNGE!

Bob

6/10/2006 10:22:00 AM  
Anonymous Anonymous said...

BOOOOOOYAAAAAAAAAAAAAH

6/10/2006 10:29:00 AM  
Anonymous Anonymous said...

GREEDY MONEY GRUBBING SELLERS AND STARVING REALTORS INITIAL STAGES OF

PAPAPAPAPAPAPA


PANIC!!!!!!!!!!!


Bob

6/10/2006 10:33:00 AM  
Anonymous Anonymous said...

“‘We’re going to look at every objection and we’re going to overcome that objection,’ said Vince Brennan, at D.R. Horton’s Sacramento division. ‘No secrets,’ he said, ‘it’s a buyer’s market.’”



IT'S A BUYERS MARKET!

WHAT A LAUGH! ANOTHER SCHEMING SPIN BY THE INDUSTRY AGAIN.

WHEN PRICES GO DOWN 30%+ THEN IT'S A BUYERS MARKET.

NOT NOW.

BABABABABABABBABA

BOOOOOOOOOOOOOOOOOYCOTT!

Bob

6/10/2006 10:35:00 AM  
Anonymous Anonymous said...

A bunch of rats fighting spinning and manupulator to find a new short in supply bagholding underwater fool house buyer.

Babababbababababa

booooooooooooy"""""cott!


Bob

6/10/2006 10:36:00 AM  
Anonymous Anonymous said...

IT IS NOT A BUYERS MARKET!

IT IS NOT A BUYERS MARKET.

IT'S A BUYERS MARKET WHEN PRICES ARE 30%= LOWER THAN PEAK SUMMER 2005 PRICES.

THEN IT'S A BUYERS MARKET.

NOT BEFORE.

WATCH THE STARVING REALTORS SPIN AWAY TO CHANGE COLLAPSING PYSCHOLOGY.

BOOOOOOOOOOOOOOOYCOTT!

Bob

6/10/2006 10:58:00 AM  
Anonymous Anonymous said...

no buyers = no sales = no maas to high ripoff house prices.

tell'em to shove it.

no maas to monthly slave payments.

Booooooooooycott!

Bob

6/10/2006 11:00:00 AM  
Blogger Smart Grid blogger said...

News Alert for Real Estate investors and home buyers in New Jersey !!!

How much these properties cost involved in a Federal Fraud case in Monmouth-Ocean County, New Jersey ???

Please read:
Monmouth/Ocean County, NEW JERSEY: Updates on Real estate mogul Solomon Dwek Federal Fraud case

Friday, June 09

6/10/2006 12:29:00 PM  
Anonymous Anonymous said...

I have seen a few more listings in my area. They are still way over priced and no buyers around. Last year a neighbor on my street had his house listed for $549k - no buyers. A month ago another neighbor put her identical home on the market for $719k.
This is completely insane - why would she and the listing realtor think they could get so much more when the same house didn't sell last year? Either they are in denial or misinformed.

6/10/2006 02:08:00 PM  
Anonymous Anonymous said...

Dowtown JC still idiotic with prices even with "Price just reduced" BS. Rentals are still going at NYC prices $2500 and above "luxury". BAH!
We need more corrections in RENT too!!!!
I know that I'm not willing ot pay for an apartments mortgage, tax and condo fees. BTW, July tax hike coming up in New Jersey. JC up quite a bit this year. HAH!

Still boycotting houses!!!!!!!!!!!
Bleed em dry!

-frustrated with Hudson County BS and corruption

6/10/2006 04:24:00 PM  
Anonymous Anonymous said...

I just had Certified Valuation, Inc. - Municipal Revaluation and Consulting knock on the door yesterday. They're raising taxes again at the shore - just in time for the housing crash...brutal.

6/10/2006 04:46:00 PM  
Anonymous Anonymous said...

anyone familiar with The real estate transfer levy ?

what exactly is that?

6/10/2006 05:12:00 PM  
Anonymous Anonymous said...

I was at the Chatham Fishawack this afternoon and and I saw a HOUSE FOR RENT in Chatham for $1450 ! IMAGINE THAT! I guess they could not sell and get their money back out of it so they are trying to cut their mortgage payment down! alot of houses in Chatham borough for rent. SO MUCH FOR BEING A HOT TOWN!

Good luck realtors, if chatham is no longer hot, I cant imagine trying to sell in Maplewood, Bloomfield or Montclair with their ridiculous taxes!

6/10/2006 08:49:00 PM  
Anonymous Anonymous said...

Real Estate Valuation Tool:

http://www.files.bz/files/11251/RealEstateValuationMethods.xls

6/11/2006 09:58:00 PM  
Anonymous Anonymous said...

RE Tool

http://tinyurl.com/ggfzp

6/11/2006 09:59:00 PM  
Anonymous Anonymous said...

NYC ain't just Manhattan, which is where RE madness reigns.

Check Flushing/Douglaston/Forest Hills/Kew Gardens in Queens, Bay Ridge/Bensonhurst in Brooklyn, Pelham Bay in the Bronx, and St. George/Ward Hill/Grymes Hill in SI. Safe, affordable rentals, though commutes begin to run in the suburban timescales (30-45mins by subway, 45-90mins by ferry + subway, depending on start and end of trip).

By the time I was considering housing in Jersey, I had already moved to Delaware :p

6/12/2006 12:04:00 PM  

Post a Comment

<< Home