• Trouble logging in? Send us a message with your username and/or email address for help.
New posts

SHELLY

SoWal Insider
Jun 13, 2005
5,770
802
The fact that there are still folks out there that believe the "Seller" covets the extra $20,000 much more than the "Buyer" covets his $100 additional payment per month is one of the reasons inventory is building and is rotting on the shelf. In a "buyers" market, what the buyer wants trumps ANYTHING the seller thinks they deserve.
 

Camp Creek Kid

Christini Zambini
Feb 20, 2005
1,278
124
52
Seacrest Beach
The fact that there are still folks out there that believe the "Seller" covets the extra $20,000 much more than the "Buyer" covets his $100 additional payment per month is one of the reasons inventory is building and is rotting on the shelf. In a "buyers" market, what the buyer wants trumps ANYTHING the seller thinks they deserve.


That is what I said. A $20,000 reduction that results in $100 less mortgage payment per month ISN'T going to motivate a potential buyer. The reduction has to make much more of a difference to get people motivated. A buyer would want a greater reduction than $20,000 and a seller has to suck it up and accept this fact.

So you agree with me ;-)
 

SHELLY

SoWal Insider
Jun 13, 2005
5,770
802
So you agree with me ;-)

You said previous: "On the other hand, if I were the seller, $20,000 is a huge amount because I get it in a lump sum. If I were the buyer, I wouldn't miss the $100. If the $100 does make a big difference to the buyer, then the $240,000 mortgage is probably too expensive in the first place."

It's too simplistic stating "$100 per month doesn't make a big difference." The extra $20,000 adds an additional $23,000+ in interest alone over the the life of the loan. So that "extra" $100+ per month will actually turn into an extra $200+ per month, all things considered....more like 4 dinners out per month.

Add on top of that...the chances are much better in the current market of, after paying the "extra" $20,000, watching as the appraisal value drop in the coming months and/or stagnate. According to the Prospect Theory, people are significantly more distressed at the prospect of any loss than they are delighted at the prospect of an equal gain...in other words just the chance of ANY loss below the original price will make buyers more apprehensive to buy without some type of substantial price decrease--be it $20,000 or $100 per month.
 
Last edited:

Sandcastle

Beach Fanatic
Jan 6, 2006
343
10
81
Tallahassee, Florida
Can anyone tell me how much the Homeowners' dues are on that lot? Are they the same for all single-family lots in Watercolor?
 
New posts


Sign Up for SoWal Newsletter