Bull run in housing over???
- Thread starter meccos12
- Start date
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Prices go down if inventory goes up. I used to sell my used college textbooks on half.com and I'd typically price my textbooks for 0.01 less than the cheapest listing in my quality category. If more books were listed before mine sold, prices went even lower. But if my book and the other cheapest books sold, prices went up.
Prices can still go down because other sellers who incorrectly priced their homes have to reduce the price to sell them. The sales price may be a lower $/sq than those in say the previous month. This means they incorrectly priced the home initially but once it hit a marketable price it sold.
If I?m a new seller in that market environment I?ll have to adjust my list price to that of the closing price of the guy down the street that had to lower his price 3 times to get it to sell. Hence, prices have gone down.
It depends. The market typically sets the selling price anyways. Lets say the last closed comp for your 4bedroom detached newish home was $900k.
List at $875k (3% less). Bidding war ensues. 10+ offers in first week
List at $900k (same). Get an offer or two around ask.
List at $925k (3% more). Get one offer.
You might sell the home for the same price (let's say $905-915k) no matter the strategy - but you can dictate the other terms (30 days close, limited contingencies, rent-back, etc.) better in a bidding war scenario.
My "Sell now or get priced out" phase is gone. We were able to get away with whatever we list at and ask for the closing cost also, but that will hardly happen now since people have been abusing the market.
And more importantly, I was saying that specifically for Delano peeps because they seem like they are getting good appreciation since they raise the price each phase, but it really doesn't mean anything unless you sell it and get the appreciated money in your pocket. Of course, if you just wait about 15 years, it will appreciate back eventually, right? So no worries.
BTW, maybe BTB was serious, but my MAX ROI chant has always been pretty sarcastic.
Yeah, maybe you can manage to handle those older income properties, but I personally would just buy something newer for both residential and rental properties. It's like I would just lease a new car instead of buying used and deal with repairs all the time. Everyone is different so there is no right or wrong here.
How can you have $342 for detached? That's usually reserved for dual HOA fee homes.
Detached has lower HOAs since you have to take care of the roof, exterior paint, and etc. yourself whereas attached have higher HOAs since they take care of everything. Unless you plan to sell a quick flip, I think those HOA costs evetually even out. Delano is attached. $342 is a little bit high IMO as well.
Not only are Delano attached, but the middle sandwich plan is above the garages of the other 2 plans.
#GarageHeatAndNoise
So "sandwich", "heat" and "noise" are insults? Or... facts?
paperboyNC
New member
qwerty said:
Prices go down if inventory goes up. I used to sell my used college textbooks on half.com and I'd typically price my textbooks for 0.01 less than the cheapest listing in my quality category. If more books were listed before mine sold, prices went even lower. But if my book and the other cheapest books sold, prices went up.
aquabliss
Well-known member
qwerty said:
Prices can still go down because other sellers who incorrectly priced their homes have to reduce the price to sell them. The sales price may be a lower $/sq than those in say the previous month. This means they incorrectly priced the home initially but once it hit a marketable price it sold.
If I?m a new seller in that market environment I?ll have to adjust my list price to that of the closing price of the guy down the street that had to lower his price 3 times to get it to sell. Hence, prices have gone down.
the.irvine
Active member
So what is a good pricing strategy in this climate when listing? Lets say if there is a very similar size, floor plan comp sold 4-6 months ago, list at that price or +/- 3%?
paperboyNC
New member
the.irvine said:
It depends. The market typically sets the selling price anyways. Lets say the last closed comp for your 4bedroom detached newish home was $900k.
List at $875k (3% less). Bidding war ensues. 10+ offers in first week
List at $900k (same). Get an offer or two around ask.
List at $925k (3% more). Get one offer.
You might sell the home for the same price (let's say $905-915k) no matter the strategy - but you can dictate the other terms (30 days close, limited contingencies, rent-back, etc.) better in a bidding war scenario.
I have a perfect solution no seller will listen to.
If you price your home at around $400-$450/sq. ft. then it will truly mean the home is priced right. And it will sell most likely above asking price each time.
However, everyone wants to price their home at $500/sq.ft. or at least higher than the one nearby that just got sold with ridiculous Delano price, the greed keeps on growing and growing and it's ruining the whole market which will bring more harm like aquabliss mentioned.
When people say the home is priced right, it's really not anymore. They look like they are priced right because the market is screwed and people have been delusional. But remember, the buyers are waking up and not delusional anymore. So your greed will not work with magical Delano listing price from now on.
Let's be honest, you will be still making killing if you were to list at $450/sq.ft. compare to the price you bought couple years ago.
If you price your home at around $400-$450/sq. ft. then it will truly mean the home is priced right. And it will sell most likely above asking price each time.
However, everyone wants to price their home at $500/sq.ft. or at least higher than the one nearby that just got sold with ridiculous Delano price, the greed keeps on growing and growing and it's ruining the whole market which will bring more harm like aquabliss mentioned.
When people say the home is priced right, it's really not anymore. They look like they are priced right because the market is screwed and people have been delusional. But remember, the buyers are waking up and not delusional anymore. So your greed will not work with magical Delano listing price from now on.
Let's be honest, you will be still making killing if you were to list at $450/sq.ft. compare to the price you bought couple years ago.
momopi
Well-known member
If you invested in the lowest priced SFR's in given area during market lows, and try to sell them during market highs, you could list them with relatively high $/SF and still be the cheapest (or among the cheapest) SFR on the market to attract buyers.
The downside is that buyers (or investors) who target the lowest priced homes on the market tend to be more demanding on the repairs around the house, so budget accordingly.
The downside is that buyers (or investors) who target the lowest priced homes on the market tend to be more demanding on the repairs around the house, so budget accordingly.
eyephone said:
My "Sell now or get priced out" phase is gone. We were able to get away with whatever we list at and ask for the closing cost also, but that will hardly happen now since people have been abusing the market.
And more importantly, I was saying that specifically for Delano peeps because they seem like they are getting good appreciation since they raise the price each phase, but it really doesn't mean anything unless you sell it and get the appreciated money in your pocket. Of course, if you just wait about 15 years, it will appreciate back eventually, right? So no worries.
BTW, maybe BTB was serious, but my MAX ROI chant has always been pretty sarcastic.
momopi said:
Yeah, maybe you can manage to handle those older income properties, but I personally would just buy something newer for both residential and rental properties. It's like I would just lease a new car instead of buying used and deal with repairs all the time. Everyone is different so there is no right or wrong here.
Irvinecommuter
New member
momopi said:
How can you have $342 for detached? That's usually reserved for dual HOA fee homes.
Irvinecommuter said:
Detached has lower HOAs since you have to take care of the roof, exterior paint, and etc. yourself whereas attached have higher HOAs since they take care of everything. Unless you plan to sell a quick flip, I think those HOA costs evetually even out. Delano is attached. $342 is a little bit high IMO as well.
irvinehomeowner
Well-known member
momopi said:
Not only are Delano attached, but the middle sandwich plan is above the garages of the other 2 plans.
#GarageHeatAndNoise
irvinehomeowner
Well-known member
Mety said:
So "sandwich", "heat" and "noise" are insults? Or... facts?