Update on "Which house would you choose?"

[NewJeffCT]

I had started this thread over the weekend about 3 houses in a town we might be moving to in the near future:

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=105x6087224

I was pleasantly surprised at the number of responses we got...

We put in an offer on House #2. Based on the home having been on the market for a while, and from some comparable homes in the same town that have closed over the past few months, we offered about 92% of the asking price on the home. We were actually going to offer a bit higher, but our agent suggested lower to start. (If you knew my wife, you'd be floored at somebody suggesting a lower starting price to her!)

Well, the sellers came back and dropped their price less than 1% as a counter offer... so, it seems they are not really that interested in negotiating a realistic price for their home. They will likely be sitting on this property for a while if they're not willing to come down in price...

On to some other homes, I guess.

[tigereye]

1. it's supposed to be a buyer's market

in a lot of regions, houses just aren't moving like they were.


I guess sellers are still living the old paradigm....

[NewJeffCT]

2. who knows?

They might figure that they've sat on this house for so long (since last summer) that they can wait 1 or 2 more months until Spring when the market usually gets busier.

[tigereye]

3. the house that we have now

was on the market for more than a year. Of course that was in another market period, years ago.

I am shocken sometimes at how expensive housing is these days. However, there are also a lot more folks, from all walks of life, who are able to buy due to interest rates. So that's a good thing.

We have friends who live near SF and the cost of houses there is just beyond belief!

[kwassa]

4. Make another counter

Come up 1%.

See what they counter. I am surprised that they don't feel the need to jump; maybe their expenses are somehow covered in the relocation. Maybe the mortgage is paid off.

Houses in this area have been on the market for many months. We sold a townhouse in three months, and were considered lucky. Some houses in our neighborhood has such little action that the owners pulled them off the market. Others sit there for months and months unsold.

[NewJeffCT]

5. I've seen how relo companies work

It is usually if the house was on the market for a certain amount of time, the relocation company buys it from the relocating family and sells it themselves...

The family that relocated out of this home had only been there a bit over 3 years. However, they're Chinese, like my wife, so likely don't have much debt outside their mortgage.

[kwassa]

7. well, that's relo insurance for them.

Walk away and try something else.

In my area, the problem is with retirees selling who have paid-off mortgages and no time pressure.

Many who don't have to sell are taking their houses off the market, because it is so weak right now. For those who have to sell, it is a very strong buyer's market. Of course, most of us have to both sell and buy.

[Wcross]

6. My sister was asked by a realtor for a one showing listing....

The Realtors client wanted to move to her specific subdivision. My sister and my brother in law are now empty nesters so they thought that if they could get a fair offer they would sell and downsize. They listed the home at a fair market value based on recent comps. The house is in great shape, impeccable landscaping and backs up to the "common area" that has the community swimming pool.
The clients made an "offer" 20% below the asking price of 240,000. They also wanted a "credit" (10k) for a professional painter to come in and repaint the interior to meet their tastes. (the house is all neutral tones now and was painted last year)
My sister came back with a counter offer of 250,000 (yes, she raised the price). She was pretty upset that these people had a realtor approach her, made her clean every nook and cranny of the house and had strangers roaming through her house. These people made an offer on it like they were desperate to sell???????

[NewJeffCT]

8. it is a pain to have to keep your home spic 'n' span

but, this family had moved out several months ago.

And, we had met our current agent at an open house 2 doors down from this home. The home 2 doors down was almost exactly the same as the home we put in an offer... only, the 2 doors down home had an addition giving them a 2nd stairway to the upstairs and an extra 400 sq feet overall... and, they had already finished the basement (adding another 1,000+ sq feet and a full bath to the home)

The closing price on that home was only slightly higher than the starting price of the home we made an offer on, even though it offered an additional 1,400+ square feet of finished space and an extra bathroom.

[Wcross]

10. Some people are very "proud" of their places.

My neighbor has his farm listed, I thought it would be worthwhile to investigate it. It is 63 acres, has two Tyson chicken barns on it and a double wide mobile home. The mobile home is worth at most 60,000, the two chicken barns throw off 30k a year on average. The land is ok for cattle grazing but it is very hilly. The downside is the water supply is very poor, he has to truck in water for the chickens. The barns are 15 years old and in need of upgrade to keep the Tyson contract.
It would have worked well with my place as I am on the ridge above the place. My well would cover any needed water and I have a large hayfield.

He is asking 550k for the place. Knock off the price of the mobile home and it is 490k for a business operation that throws off 30k a year. That is a return on investment of 6% per year! I could get 6% in bonds right now and not have to lift a finger. That assumes no additional improvements, the risk of losing the chicken contract, the risk of "bird flu" AND having to give the investment daily attention.
I also know he bought the place for 125k in 2000 and the only improvement was adding a mobile home. He has also let the rest of the farm go, it is overgrown and would need serious work to allow any cows to graze.
He has had it listed for almost a year now, I don't expect him to sell it. He hasn't backed off his asking price at all.

I guess he is waiting for a sucker to come along.

[NewJeffCT]

11. I don't know if I could get *that* attached to a home

any home. I mean, with our current home, we went through the whole process of having it built - I was there taking pictures of them digging the foundation. But, when it was time to sell, I didn't hesitate.

But, this family has only lived in the home for 3+ years, having relocated into town and are now relocated out.

[seemunkee]

9. Not sure what the market it like where you

They don't sound realistic to me.
We get a flyer from one of the local realtors and it show houses sold, asking price, selling price, and days on market. It is not looking good if you are trying to sell. In the lower range, mostly townhomes, the prices are dropping a little 5-10K and still selling in under a month or two. But in the upper ranges 5-700K the days on market is around 6 months to a year and the sellers are accepting 50-100K less than asking prices. The one million plus home that sold was listed at 1,400K and sold for 1,039K after 800 days on market.