Misguidance on Real Estate plunge

I do hear what you are saying, but the market is dynamic in nature, not static, and to try to stick our heads in the sand and not notice this fact, is not doing anyone any service. Just as the market is able to move up, it is also able to move down. When the market was moving up, a property which sat on the market for three months, unnoticed, might see surrounding properties selling at higher and higher prices. When the comparible closed sales justified a higher price, a seller would have been a little crazy not to increase the asking price of the property which didn't get looked at previously. You have to move with the market in order to make sales.

But you know joe I got to tanken Don't you tink dat da feller wiff da higher price is ahelpen ya? But da feller who gives it all away is ahurten everyone. One is helpem da uder ahurten? just a wonderen.:idontno:

Buy dat bottom land maw.

But you know joe I got to tanken Don't you tink dat da feller wiff da higher price is ahelpen ya? But da feller who gives it all away is ahurten everyone. One is helpem da uder ahurten? just a wonderen.:idontno:

Buy dat bottom land maw.

No, in fact, I think he is hurting me, by confusing the buyers as to what the real price may be for property in that area. A buyer who may be interested in my listing will never call for a price, but instead, use the ForSaleByOwner's posted price of $325K to base the asking prices for all similar lots in the area (and you know that the ForSaleByOwners "has to be" the cheaper of the two -- afterall, he isn't paying a commission -- :funn: Right!) By comparing the price of the two, maybe the buyers also think that there is something wrong with the property which I have listed, for it to be priced at almost one third of the price.

That seller has every right to post his sign, and I'm not objecting to it. However, the only way he would be helping me is if he removed the sign altogether.

I totally agree with you on this statement and thats why it is :roll: imperative to price right the first time. That goes for everyone,which is what I have already said.

I totally agree with you on this statement and thats why it is :roll: imperative to price right the first time.

I agree, but doing so doesn't take time and change into effect. This other ForSaleByOwner, when originally posted for sale, could have probably brought $260K- $275K, and likely more if the market had not slowed. You are right that he could have probably sold it if he priced it correctly back then, but back then, you could place a price of $250K on the property and get a contract the next day, and the sellers were complaining that it was priced too low, even though the only other closed sales were selling at $225K. So, he was just trying to price it at its highest potential. The problem of him selling it is that he remains stuck believing that his property is worth more than it is likely to sell for right now. Maybe 10 years down the road, his dream may come true, but we are living in 2007, not 2017.

A buyer who may be interested in my listing will never call for a price, but instead, use the ForSaleByOwner's posted price of $325K to base the asking prices for all similar lots in the area (and you know that the ForSaleByOwners "has to be" the cheaper of the two -- afterall, he isn't paying a commission -- :funn: Right!) .

Been enjoying this thread, and as a potential buyer, I would think that most of us are watching, and have to be somewhat educated and think that their are two types of FSBO--one that "has to sell", and one that isn't too serious and not willing to budge on price.

Dune lover,

I ask you why are you not buying right now? could it be that you feel the prices are going to come down more? If you knew for a fact they were not and you wanted a place here would you go ahead and buy or wait until the prices rose?

Dune lover,

I ask you why are you not buying right now? could it be that you feel the prices are going to come down more? If you knew for a fact they were not and you wanted a place here would you go ahead and buy or wait until the prices rose?

Very instructive thread! I have to jump in here and ask why are you selling right now? If you don't "have" to sell, it doesn't do you or the greater market any good to put yours on the MLS at this time. There are just too many properties for sale and not enough buyers, so those with the lowest prices are going to get the traffic and interest. You can't really blame that on the realtors.

Lots of people are in dire straits and willing to sell just to sell -- and anyone who isn't in that position should not even have their properties on the market right now, in my opinion.

Dune lover,

I ask you why are you not buying right now? could it be that you feel the prices are going to come down more? If you knew for a fact they were not and you wanted a place here would you go ahead and buy or wait until the prices rose?

2Fab,
I really like your theory but it really does discount the dynamics of basic economics. What the market is doing is normal and to be expected. I am as upset as you about drop in values but truly believe this thing will correct itself once the cycle is complete. I think the majority of agents try to go in with the right price but sellers tend to think they know what the values should be. The agents first mistake is letting the seller determine the price. Remember, the buyer determines value, and every month your property does not sell at its current price is less value perceived by the buyer.

So true.....

And for u Tampa you have a great point also....

Dune lover,

I ask you why are you not buying right now? could it be that you feel the prices are going to come down more? If you knew for a fact they were not and you wanted a place here would you go ahead and buy or wait until the prices rose?

I think you are getting at would I wait for a better price? I think prices will come down more, but it is worth watching now, as plenty of people are desperate to sell and dependent on the property, it might be worth buying now, as I would be in it for the long term---i.e. not a second home or vacation home. However, I would probably rent long term, for a year to be sure where I want to live. BUT, there is more to my picture, like relocating a business and three kids...so I am in a holding pattern. Thanks for asking.

Very instructive thread! I have to jump in here and ask why are you selling right now? If you don't "have" to sell, it doesn't do you or the greater market any good to put yours on the MLS at this time. There are just too many properties for sale and not enough buyers, so those with the lowest prices are going to get the traffic and interest. You can't really blame that on the realtors.

Lots of people are in dire straits and willing to sell just to sell -- and anyone who isn't in that position should not even have their properties on the market right now, in my opinion.

Totally agree, it does degrade the market!! and possibly confuse a few buyers, tie up realtors and everything else.

You know what is interesting to me is, that after speaking w/ a couple agents in the area, they actually said they would get back w/ me and didn't? That doesn't help the market either--kind of suprising considering how they should be jumping on my business....I was checking out commercial, but little did they know that w/ that commercial came residential later!!! hmmm.

Been enjoying this thread, and as a potential buyer, I would think that most of us are watching, and have to be somewhat educated and think that their are two types of FSBO--one that "has to sell", and one that isn't too serious and not willing to budge on price.

I too am enjoying the thread and am in the market when I think the bottom has been reached. 2Fabian-Lowering prices are not what keeps me out of the market ( I believe your point is that lowering your price encourages people to stay out of the market)but rather the inventory available and the lack of sales. If prices coming down increased sales( as most economic theory attests to), then I would be more inclined to jump into the market thinking it is near the bottom.

dunelover,

That is unfortunate, especially being that you are interested in future purchase.

Bless him lord:clap_1:

One thing I know for sure the market will change. We are in a depreciating market but it sure beats 2006. If I was buying right now I would keep my finger on the trigger because when your dream property gets priced right it will not last long. The buyers are swarming....

One of the things that needs to change is the development of more of a middle class white collar job base. Right now, the bulk of that kind of thing in the area is either DoD-related (which comes with some barriers to entry) or real estate-related (which we're now seeing is highly cyclical)

Start getting those kinds of companies in there with $40-$60K a year salaries, and you'll be seeing the $200K-$400K housing market picking right up (I'm assuming a good number of double income families buying homes)

Mouse,

Saw story on Aerospace Integration Corp in Crestview cutting 10% of its workforce last week as a result of last year's buyout by MTC Tech. I'm sure they'll put a positive spin on this saying Florida's unemployment rate is the lowest in the nation...no problem finding jobs here on the panhandle--especially during tourist season.

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Mouse,

Saw story on Aerospace Integration Corp in Crestview cutting 10% of its workforce last week as a result of last year's buyout by MTC Tech. I'm sure they'll put a positive spin on this saying Florida's unemployment rate is the lowest in the nation...no problem finding jobs here on the panhandle--especially during tourist season.

.

This bores me. Money is being made and people are working. The end of the world is not here. Yes the nation is distressed in the housing industry. But so is GM, Ford etc and I could go on and on. If you think negative then u r. But the power of commerce in this county has never been challenged and never can be. So Shelly or any others that think that the sun will not rise tomorrow or set please post. I will need to prepare.

Originally Posted by SHELLY [ame="http://www.sowal.com/bb/showthread.php?p=233320#post233320"][/ame]
Mouse,

Saw story on Aerospace Integration Corp in Crestview cutting 10% of its workforce last week as a result of last year's buyout by MTC Tech. I'm sure they'll put a positive spin on this saying Florida's unemployment rate is the lowest in the nation...no problem finding jobs here on the panhandle--especially during tourist season.

This bores me. Money is being made and people are working. The end of the world is not here. Yes the nation is distressed in the housing industry. But so is GM, Ford etc and I could go on and on. If you think negative then u r. But the power of commerce in this county has never been challenged and never can be. So Shelly or any others that think that the sun will not rise tomorrow or set please post. I will need to prepare.

Shelly has read "The Secret" and is practicing the art. If you think it.. it will happen. 1st Law of Attraction..😀

IIRC, the raw number of jobs involved was supposed to be about 40-45 people, which is small enough for those guys to get absorbed into other base contracting roles.

The biggie in the area happens on Monday when the report on the fate of the 46th Test Wing goes public. Several thousand high tech jobs related to that one.

Originally Posted by SHELLY
Mouse,





Shelly has read "The Secret" and is practicing the art. If you think it.. it will happen. 1st Law of Attraction..😀

I see. I should have known. :bang:

The point I was making prior about the Golf Memberships is these were places that were exclusive to get into and it is my belief how ever humble that we as owners have a exclusive place to live here and we should not be so quick to give it away.

Once again, fundamentally flawed example. Somewhere like Augusta National is a collective of all it's members. Property owners at the beach are all individuals with different needs and circumstances. For your example to make sense, it would have to be one of two things:

1. All property owners in, say, Sowal, are in an ironclad contractual relationship to keep prices up and or be required to vote and approve any sale.

2. Augusta National would have to allow any member to individually sell their membership anytime they want and for whatever price necessary. Private club, which the beach area is not.

I do agree with one of your points however. If you don't have to sell, don't give it away.

thank you for your comments. I was only trying to say that just as it is in Augusta so should it be down here. and pray tell if the prices do continue to dip how long before you realize that the place you once lived is no longer that same place. Can you say flight from this area will not be good for many who have invested all to live in a place free of crime and the sorts. But if the prices do continue on there present trend it could be devastating to many who live in that area.Remember there was a time before when you could not give those properties away,be careful not to let it happen again. Keep the prices reasonable and many will still want to buy. I don't want just anyone living next to me and I'm sure I am not alone in my feelings

The biggie in the area happens on Monday when the report on the fate of the 46th Test Wing goes public. Several thousand high tech jobs related to that one.

Mouse,

Seems to be some waffling in the Wing on when this report will be released and "if" (once released) it will mean anything at all. Looks like our the U.S. government threw some more taxpayer money down a rat hole for yet another meaningless "study" -- apparently the content of the report doesn't reflect what the boys in the backroom long ago had decided the final outcome would be.

:idontno:

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