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traderx

Beach Fanatic
Mar 25, 2008
2,133
467
...but they are still out there. How about the 1200 square foot, Joe built:yikes: cottage in Phase I of Watercolor that just sold for $1.05 million or just over $800 per square foot.

Really? On the beach?
 

Smiling JOe

SoWal Expert
Nov 18, 2004
31,648
1,773
Let's back up a moment. I read a few people hinting that a persons decision to over-price their home is dishonest and illegal. For the record, it is not illegal to over-price your home, just as it isn't illegal to overcharge for a haircut. It just doesn't bring in business, and often will repulse anyone from buying, or trusting that you know anything about pricing real estate. Dishonest? Really? I don't know that I fully agree with overpricing being dishonest, and if it is, isn't every listing which doesn't sell today, over-priced, and therefore "dishonest?"
 

Rudyjohn

SoWal Insider
Feb 10, 2005
7,744
233
Chicago Area
Let's back up a moment. I read a few people hinting that a persons decision to over-price their home is dishonest and illegal. For the record, it is not illegal to over-price your home, just as it isn't illegal to overcharge for a haircut. It just doesn't bring in business, and often will repulse anyone from buying, or trusting that you know anything about pricing real estate. Dishonest? Really? I don't know that I fully agree with overpricing being dishonest, and if it is, isn't every listing which doesn't sell today, over-priced, and therefore "dishonest?"

good point. Hadn't thought of it that way.
 

scooterbug44

SoWal Expert
May 8, 2007
16,732
3,330
Sowal
This isn't a case of someone pricing their home above market value because of sentiment, a mistaken idea about its value, or a sellers market, this is someone who is specifically pricing their home far above what they know is its value in the explicitly stated hope that they can fool someone into buying it.

That's dishonest to me. :wave:
 

JoshMclean

Beach Fanatic
Jan 15, 2007
995
128
Santa Rosa Beach
I agree with SJ here. Everyone who is overpriced right now is hoping that someone will come in, fall in love, and be willing to pay over market value for that property. There are plenty of sellers out there that don't need to sell and have unrealistic prices on their property. They always say it just takes one.
Of course it doesn't help my situation, but they're free to do what they want.
 

Smiling JOe

SoWal Expert
Nov 18, 2004
31,648
1,773
scooter, what is the price point where a property goes from being dishonest in its price to honest? The honest price is the price at which buyers and sellers agree upon and make an exchange, so back to my point, all listings which are not selling would be dishonest, or so it sounds. What is the difference between listing a property, leaving wiggle room? I saw a lot which recently sold for $200K, which was listed at $300K. Was the seller dishonest?

Let's get away from real estate for a moment. Isn't price all about marketing and showing how a property is worth a particular amount? Is a bar of Dove soap really worth $4 a bar? Yes, but only because buyers are willing to pay that much for it. They perceive enough value in it to justify the price.

That said, I agree with Joe Mammy regarding a good and honest appraiser not valuing the property enough to make that sale close.
 

traderx

Beach Fanatic
Mar 25, 2008
2,133
467
The over pricing practice really turns off would-be buyers. I looked at the market in the summer and again this fall and decided that I will rent when I move to SoWal. No interest in trying to catch a falling knife. My conclusion is that many sellers, if not most, are not that motivated to sell. I believe there is still a reckoning process that the SoWal market needs to go through.
 

JoshMclean

Beach Fanatic
Jan 15, 2007
995
128
Santa Rosa Beach
Here is a quote from my website that I wrote a while back. Thought it fits this situation pretty well.

"The Price" With the large inventory to choose from you must price your home to sell. The price is the most important factor in selling a home in any market and you must price it correctly the first time. The idea of pricing a home high and hoping for a buyer to magically appear does not work. Price reduction after price reduction will only hurt the potential sale of your property in the long run. The first 8 weeks on the market is the most critical time for your property. After much time on the market and several price reductions your property becomes stale. Potential buyers begin to wonder if there is anything wrong with the property and why no one has purchased it. Let me show you what your property will bring in this market. I will show you what has sold, what is currently for sale, and what could not sell and at what price. I will give you a total evaluation on the property and give my professional suggestion for a listing price.
 
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