As most of you know, I'm looking to snag what once was a high-priced property for a much lower-than-peak price. Yes, we hope to move areas within our city, giving us a better location, better house, and more land. We've been looking for a few months now, but we haven't found exactly what we'd like. And sellers haven't gotten really desperate -- or at least I didn't think they had until I got this email from my real estate agent (we were discussing the number of listing going down recently as well as prices in the market):
We may see a drop in number of listings around the holiday's. You're right, there are a lot of desperate people out there. If you are seeing homes out there that are close to your price range don't forget that we can offer less. ( A LOT less) Sometimes people won't lower their price online but if they actually have an offer in front of their face they may take it. You wouldn't believe some of the deals I've put together recently!!! Right now I have a house that started out being listed at 599 and it may sell for 321!!!! The moral of the story is: Don't let the listed price stop you from going to look!
Ok, the meltdown is official. When the price of a house drops almost 50%, either they were smoking dope when they priced it at $599k or things have gotten really, really bad. It's probably a combination of the two, but that's just a massive drop. Unbelievable!
does this email anecdotally represent a r.e. meltdown or a crafty r.e. agent trying to motivate a seller? i think it's the later. r.e. is local but i can say in my area despite the fact that house sales have dropped from a high to a brisk pace the price of homes are still appreciating. can anyone say why? because despite the drop in sales it was not that drastic in a lot of places, instead of 2006 sales paces we have 2002 sales paces which were very go years for r.e. maybe things are desperate like that email says but i truly doubt it, after all r.e. agents are merely sales people.
Posted by: claymeadow | November 06, 2007 at 09:49 AM
Clay --
Prices are certainly NOT appreciating here. Michigan is one of the top several states in foreclosures and prices are dropping quickly.
From my own personal experience: I've been watching one house that started with a price of $459k and is now down to a list price of $399k. Let's say it sells for $359k (which is probably the best they can hope to get out of it at this point.) That means the price dropped $100k from the original list price!
That said, I agree, RE agents are sales people, but 1) I really don't think our agent is that crafty (believe me when I say this) and 2) if she can get ma a house I would even consider for $599k and sell it to me for $321k, I'm all ears!
Posted by: FMF | November 06, 2007 at 10:35 AM
Michigan is definitely in the outlier category. There's a lot of things going against Michigan right now. It's sad. (I grew up there.) But if the economy there doesn't diversify, it will only continue.
Posted by: JACK | November 06, 2007 at 12:25 PM
Real estate agents are salespeople, but they also have a responsibility to get their buyers a good deal. How pissed would you be if you found out a house that was priced at $599k eventually sold for $321k and that is in your price range? If it is really a good deal (and wasn't just overpriced at the start) I sure wouldn't be mad at my agent for trying.
Posted by: Kevin | November 06, 2007 at 01:14 PM
It is certainly a sign of the times when investment firms are buying more homes than actual buyers.
Posted by: Free Real Estate Listings | November 06, 2007 at 04:55 PM
What a great time for me to be in the market for my first house!
Posted by: Jared | November 07, 2007 at 02:27 PM
Don't drink the kool-aid. This is not a good time to buy. When the used house sales people call it a "buyer's market," it is actually a seller's market, and when they call it a "seller's market," it is really a buyer's market.
Think of 2003. They were calling it a seller's market. But the smart people were the buyers, cause they resold them and made a killing for almost no work. No they call it a buyer's market. The smart people are the seller's, because they are getting out from under a rapidly depreciating asset and passing that depreciation on to the buyer.
It's a renter's market.
Posted by: Adam | January 26, 2008 at 09:57 PM