Newsflash to home sellers: Buyers don’t care what you paid!
Home Buyers Don’t Care What You Paid!
Home Buyers don’t care what you paid. Why should they? Current sellers who bought their homes after 2007 are overpricing their properties by an average of 14%, those who bought their homes before 2002 overprice by 12% over market value, those who bought from 2002-2006 about 9% over. In general home values are down about 30% from the market peak.
Your buying price is irrelevant now
Sellers need to take a hard look at comparable sales because buyers don’t care what you paid or what your mortgage is. Like any other commodity your home’s value is what a willing buyer will pay to a willing seller with neither one being under artificial duress. Of course some sellers may be faced with a short -sale and their reluctance to lower the price is understandable. Stagnant properties begin to bring their own set of woes such as:
- Pest control
- Roof repair
- Air conditioning/heating
- Water heaters
- Foundation cracks
- Leaking/burst pipes
With persistent unemployment, a large inventory of homes are still in foreclosure. A high ratio of homes have negative equity. By negative equity people mean “underwater.”
Relief to the economy is uncertain. Beware of self appointed experts predicting either a rosy future or gloom and doomsday. Do they know what will happen to European banks? In Cyprus? What the next move will be by the tin horn dictator of the moment? Predictions are guesses that they want to forget about immediately if they’re wrong. If they’re right they will brag about it forever. Do what your intellect tells you not someone else.
Your Own Personal Situation
Staying up with the momentum of events in your own life can be uncertain for us all. That is the joy and pain of living. Unless you are a professional real estate investor your life needs are far more important to you than trying to predict trends. Being realistic no matter whether you are buying or selling may require professional input. Don’t be ashamed of being human. It’s hard to read the label from inside the bottle.
Reality may be painful to face for sellers, but, like it or not, it’s always there.
The answer to good news or bad the emperor was told is: “this too shall pass.”
- Half of Homeowners Under 40 Are Still Underwater
- U.S. Homeowners With Negative Equity Drop as Prices Rise
- Five Emotional Mistakes to Avoid in the Home-Selling Journey
- Arm’s length transactions and short sales