Is it just me or do prices for homes on the market seem out of sink with their value? Yes there has been some inflation but it seems many agents/sellers are trying to exceed that by inflating prices. I've noticed, at least in our subdivision, prices are higher than expected and houses are sitting on the market much longer than they were last year. Yes, some of that probably has to do with the rise in interest rates but I also think some realtors are pricing their clients out of a sale. Take for example the following house ... mls # 900504 <you can look up on realtor.com or hpw.com> The house was built in 1964 ... has 2020 sq feet ... 3 bed 2.5 bath We almost bought that house when we moved here 6 years ago. Then it was listed for about $120K and someone bought it for $118K. In 2005 someone bought it for $138K. It is now on the market for $179,900. The pictures on the listing show NO upgrades to the interior or exterior from when we looked at it six years ago and it is not in the a "hot" real estate area. So ... how could this agent possibly think it will sell for that much? Do you think the inflation of home prices is a true reflection of value for homes in the area or wishful thinking by realtors?
I think that sounds fair. Last I heard, the going rate was 101.00 per square foot - in which case that would be a deal. Some houses in my neighborhood are scooped up after a week or two on the market, others sit for months. Some houses are well maintained, and some look like... well, guano - they are usually the ones that sit for awhile. I am happy with the prices, I've got Broadmoor all around me, McLemore Estates going up. Only makes my home increase in value.
The particular house I mentioned ... I could see the jump in price if the house had been upgraded. It has the same "pink" carpet we saw six years ago and what decade was pink carpet in style? The carpet reflects the dated condition of the home.
Keep in mind it is not the agent who ultimately decides what the house either lists or sells for. The seller decides what to list the property for, taking into consideration what the agent's opinion is as to the value of the house. The buyer then decides what they are willing to pay. If there is financing involved, it must appraise or they won't get a loan. (Although there has been a problem in JC with some crooked agents, mortgage brokers, attorneys and appraisers) An agent doesn't get paid till the house sells, so it is of absolutely no benefit to them to have a house sitting on the market because it is overpriced. Lots of times, it is the homeowner with the $$ in their eyes. Just my two cents........................
http://homes.realtor.com/search/lis...216bd1fc9&lid=1072358207&lsn=1&srcnt=2#Detail 1.66 acres, a good size lot.
I just think the housing market is going through the roof. I've been watching the houses in our neighborhood sell at prices I never would have imagined. Comparables to our home are going for 30k more than what we paid 3 years ago.
Yep, but thats good for you if you decide to sell, or you just like knowing you've got some equity! Not so good if you want to buy...................
