Expressing Frustration

[Bobby J]

Agree, these people raising prices in the spring are desperate and hoping those visiting during the beautiful sunny weather will be as dumb as they were and believe that "now is the time to buy" and do no research.



Disagree, if $50,000 was the best offer on the lot after a reasonable time on the market then that would be its true market value. As you state in your post "Ultimately, the buyers set the price".

I agree with your point Poppy. Property was not on market but a few days. Bank was throwing prices out to see what will stick. Buyer stuck with the $50,000 so at that point that is the value. He could resell it today for $75,000. The buyer sets the value that's why you really can't get upset when you see prices begin to again creep up in certain areas. I have been back only a few days and getting rather busy in a short time. Very exciting!

 

[Matt J]

I agree with your point Poppy. Property was not on market but a few days. Bank was throwing prices out to see what will stick. Buyer stuck with the $50,000 so at that point that is the value. He could resell it today for $75,000. The buyer sets the value that's why you really can't get upset when you see prices begin to again creep up in certain areas. I have been back only a few days and getting rather busy in a short time. Very exciting!

Why aren't the banks using a local broker(s) to set realistic prices in both directions. My sister is currently closing on her home in Tallahassee that originally sold for $150,000, broker set price at $100,000 and my sis offered $90k got rebuttal of $95k and is going to move in shortly. The whole process took about 3 months, the time it normally takes to get a no on a short sale in South Walton.

 

[Bobby J]

Why aren't the banks using a local broker(s) to set realistic prices in both directions. My sister is currently closing on her home in Tallahassee that originally sold for $150,000, broker set price at $100,000 and my sis offered $90k got rebuttal of $95k and is going to move in shortly. The whole process took about 3 months, the time it normally takes to get a no on a short sale in South Walton.

"Why aren't banks" I sure hear that one a lot. I think the simple answer is because that would make sense. I don't think we got in this mess with banks making decisions that were based off of making sense. Therefore, to try to wonder "why" about bank making decisions is a complete waste of time. I bang my head against the wall often SWGB.

 

[homeboy]

O.K., I can't help myself here. As some of you may know by now, I am an avid follower of the real estate market along 30-A... in particular Watercolor. I do this in hopes of one day buying... and let's face it, I just have a love for it. I am completely irked at the random.... "let's raise the price 50 thousand now that it's spring and we sense market growth." I've seen lots purchased for under two and put back on the market for over three. I've seen homes purchased for in the sixes, painted and staged, and put back on the market for in the nine's. I just got notified of "price changes" in phase four WC... both increases of around $50,000. It feels like just plain greed. What on earth is driving these decisions?? I read article after article about how appraisals are coming in for below contracts and now the buyers and sellers are losing deals, or re-negotiating at the lower prices. All the while builders, flippers etc.. are raising the prices. I say this because my heart really does belong to 30-A and I feel that myself and others are being cheated out of our chance to make a good, sound decision. I've said it before, I'm not looking for a smokin' deal, just one that makes sense. Knowing I'm paying $50,000 more this week than I would have last week for the exact same house, doesn't make a lot of sense to me. Growth in the market place is one thing, gouging is another.

Not sure what sellers are "raising prices", but overall, sales price per square foot in watercolor has been falling for 4 straight years (analysis excludes phase 4 slaes due to very low prices per square foot). This fact applies to Phases 1, 2 and 3 and the trend continues downward in the early part of 2011. So, reality says prices continue to fall, albiet at a slower pace. The decline has not stopped and there continues to be too many shorts and foreclosures for the trend to reverse. Prices will not be going up by any significant percentage for years to come.

You have been on the sidelines for a long time. What price do you expect to pay per square foot and what phase do you want to buy in? At some point you simply need to pull the trigger. Have you considered buying a lot (these prices continue to fall by fairly large percentages) and build? Probably the best bet to get exactly what you want at the best price.

 

[melscuba]

Not sure what sellers are "raising prices", but overall, sales price per square foot in watercolor has been falling for 4 straight years (analysis excludes phase 4 slaes due to very low prices per square foot). This fact applies to Phases 1, 2 and 3 and the trend continues downward in the early part of 2011. So, reality says prices continue to fall, albiet at a slower pace. The decline has not stopped and there continues to be too many shorts and foreclosures for the trend to reverse. Prices will not be going up by any significant percentage for years to come.

You have been on the sidelines for a long time. What price do you expect to pay per square foot and what phase do you want to buy in? At some point you simply need to pull the trigger. Have you considered buying a lot (these prices continue to fall by fairly large percentages) and build? Probably the best bet to get exactly what you want at the best price.

Man, you're telling me... we've been on the sidelines a long time. Partly watching the market... the other part, our timing financially. It's been a debate between full time versus second home.... a huge price difference for us. We have made a couple of attempts since this past fall... to no avail. I think I may have said earlier, I'm a bit superstitious, so I won't say much more.. And you are right, I've seen price per square drop as well. I guess that is why I shake my head at what seems like arbitrary hikes. For me, I'm hoping the stars align and something works for us. And for the market, I don't like seeing some of the randomness in prices. I want to see the market become stable and make sense... for 30-A in general. A good point was made earlier... and I know it to be true. A seller can ask all day long... the market will bear a certain price. While I personally don't want to see prices go up all... so we can get our ducks in a row, what I want more is a stable market where I can look and say, "Yep, I get it... that makes sense". A $50,000 price hike in a week.... I just don't get.

 

[30ashopper]

Why aren't the banks using a local broker(s) to set realistic prices in both directions. My sister is currently closing on her home in Tallahassee that originally sold for $150,000, broker set price at $100,000 and my sis offered $90k got rebuttal of $95k and is going to move in shortly. The whole process took about 3 months, the time it normally takes to get a no on a short sale in South Walton.

I think it depends on the bank/lender. Fannie Mae foreclosures are selling at rock bottom prices from what I've seen. (Yeah government backing!) Commercial banks that are local seem to be listing about right, national and multi-national banks are listing too high. (Those will come down in time as the cost of ownership wears on them.)

 

[Bobby J]

. A $50,000 price hike in a week.... I just don't get.

I think you may see a lot of this until all get aligned. Right now pricing is still all over the boards. There are roughly 89 homes listed in Watercolor right now. Of those 89, maybe 15- 20 are really worth looking at and priced right. In a sense many agents, myself included are beginning to see a shortage of "real" inventory in Watercolor. For instance, if a buyer wanted a home with a least 4 bedroom, 2000 plus square feet, under $1,200,000 they would only have 22 to choose from. Of those 22, only 5 are good buys. So in a sense, it looks like a lot of inventory but you can sure see real fast why builders are beginning to build and why you might see a price jump up $50,000 in a day. Many sellers feels the market over corrected and await a chance to move the price up. May not be the brightest move but many sellers feel this is where the pricing belongs anyways.

Melscuba- Not at all trying to debate you. Just trying to give you a take of what a seller might be thinking.

 

[melscuba]

I think you may see a lot of this until all get aligned. Right now pricing is still all over the boards. There are roughly 89 homes listed in Watercolor right now. Of those 89, maybe 15- 20 are really worth looking at and priced right. In a sense many agents, myself included are beginning to see a shortage of "real" inventory in Watercolor. For instance, if a buyer wanted a home with a least 4 bedroom, 2000 plus square feet, under $1,200,000 they would only have 22 to choose from. Of those 22, only 5 are good buys. So in a sense, it looks like a lot of inventory but you can sure see real fast why builders are beginning to build and why you might see a price jump up $50,000 in a day. Many sellers feels the market over corrected and await a chance to move the price up. May not be the brightest move but many sellers feel this is where the pricing belongs anyways.

Melscuba- Not at all trying to debate you. Just trying to give you a take of what a seller might be thinking.

I appreciate the insight... and can't disagree.