Real estate market. Some people are still nuts!

[Fulcrum525]

Just a quick rant on something that's been really bugging me lately.

The market dictates the price of real estate, we all know that. I've been looking for houses for some time now and I have to say that even though the market crashed a few years back and prices are still low; there are still sellers out there who are absolutely delusional in the price that they think they can get.

On average houses in the area where i'm looking range from $110 to $150 per square foot. Today a saw a new listing for a little ranch priced at an absolutely ridiculous $293 per square foot! (1,278 sq feet) The thing is that this isn't the first time that i've run across this. I had an identical situation last fall with a seller who flat out refused to drop his price even $1 for an even smaller house (No surprise it's still on the market )

I could see a price like that if it had every extra feature conceivable (Everything updated and in perfect shape, a barn, a pool, gazebo or anything else that could be tacked on) But all I see in the photos is an average 2 bedroom, 2 car garage (Attached) house with all of the original fixtures. (Counter-tops, cabinets and a lot of 1960s era wood paneling) Now with that being said, I don't mind wood paneling or older cabinets etc; its a question of ridiculousness of what you're paying vs what you're getting. The ONLY additional selling point is that it has an extra albeit mostly rocking and hilly 5 acres of land. Still doesn't come close to justifying the price though as a number of reasonably priced houses in town have an equal amount of land.

What is wrong with people?

[BobK]

Send a copy of the ad to the local PVA. I'm sure he will be happy to hear the owner thinks it is worth a lot more.

[kerry]

Around here prices are above pre-crash levels.

[spdrun]

Someone wants him/her/it to sell. S/he/it doesn't want to sell. Same deal as with cars in beat shape priced at 300% of blue book.

[Fulcrum525]

Originally Posted by spdrun

Someone wants him/her/it to sell. S/he/it doesn't want to sell. Same deal as with cars in beat shape priced at 300% of blue book.

Tell me about it! I went through the exact same thing on my search for a G-Class.

[link]

A neighbor did about the same thing as noted by the OP. The neighbor listed a place for about 3x the magic number per square foot compared to the 'hood and he sold it in about 2 months. It had been recently rebuilt and was gorgeous. I was happy to see that the market had rebounded enough so that the place sold as it says positive things about the local RE market place.

[link]

Originally Posted by Fulcrum525

Tell me about it! I went through the exact same thing on my search for a G-Class.

I noticed that in the last year or so G wagons from MY 2000-2003 have increased in value about $3000 to $8000 compared to what they were in 2008.

[spdrun]

Originally Posted by link

A neighbor did about the same thing as noted by the OP. The neighbor listed a place for about 3x the magic number per square foot compared to the 'hood and he sold it in about 2 months. It had been recently rebuilt and was gorgeous. I was happy to see that the market had rebounded enough so that the place sold as it says positive things about the local RE market place.

Glad that the suburban NYC market (not NYC itself) still hasn't rebounded. Have some offers down on short sales, hopefully one will go through at a favorable ratio of expenses to rents...

[barry12345]

Real estate firms and too easy mortgage money have done extensive damage to sensible resale values over the years.

From my Canadian perspective some areas of the United States seem to have decent prices and some areas very high in comparison. This paying the square footage costs you quote with sixties remodeling needs present is questionable.

I am not enthralled with common current rhetoric. Still the best terminology is I tend to think outside the box on real estate acquisitions. As crazy as it seems it usually has worked out to our benefit. I have been told you cannot do the things you do. Yet I still just do them.

For example. When we arrived in the local town. I simply went door to door on places I was interested in and asked if this property could be purchased. Sounds insane but it got what we needed at that time for a decent price in two days.

For far less than what real estate firms would have tried to force out of it. Looking back over all the years we have not brought one house or piece of land where real estate companies existed in the transaction.

The equivenant of economic slavery never interested me. Part of freedom to me is not being oppressed by heavy financial obligations. Or overbearing government regulations that have too much control over people.

Working just to make sure there was enough food and shelter to have the strength to repeat it the next day was and is a form of slavery if you examine it.

Learning how to buy if not job one is or should be mandatory.

[rs899]

Not sure about real estate, but I find that many people seem to think what they should get for something should relate to what they paid, even if they got hosed when they bought it. Market value may cross their minds for a long, long time...

[Fulcrum525]

Originally Posted by link

I noticed that in the last year or so G wagons from MY 2000-2003 have increased in value about $3000 to $8000 compared to what they were in 2008.

This is thanks to MBUSA bringing over so many G500s since 2002. The market is flooded with plenty of units to choose from now (Grey market trucks can still command a premium however)

Originally Posted by barry12345

For example. When we arrived in the local town. I simply went door to door on places I was interested in and asked if this property could be purchased. Sounds insane but it got what we needed at that time for a decent price in two days.

Too be honest i've been thinking about doing the same only with a letter left if the mailbox.

[Hatterasguy]

In any market you will always get outliers in terms of pricing, or to put it simply some places are just not really for sale!


I don't beleive the SF method is the best way to value SFH, I prefer location, type, style, quality, etc.

For example in my city I can build the exact same spec house and the price difference will be $50k-$70k just based on the side of town its on. Put it on the water and the price goes up $300%.

Its starting to become a sellers market, deals are still around but your at the end of the party in that respect. To many HGTV idiots are moving into the market. The party for now is in hurricane tear downs those are all coming on the market, and in the last of the foreclosure inventory the banks are spitting out now. But that party will be over in another 12-18 months.

[Hatterasguy]

Originally Posted by link

I noticed that in the last year or so G wagons from MY 2000-2003 have increased in value about $3000 to $8000 compared to what they were in 2008.

I know my buddy is thinking about selling his, I told him he should for a new truck.

[panZZer]

Originally Posted by Fulcrum525

Just a quick rant on something that's been really bugging me lately.

The market dictates the price of real estate, we all know that. I've been looking for houses for some time now and I have to say that even though the market crashed a few years back and prices are still low; there are still sellers out there who are absolutely delusional in the price that they think they can get.

On average houses in the area where i'm looking range from $110 to $150 per square foot. Today a saw a new listing for a little ranch priced at an absolutely ridiculous $293 per square foot! (1,278 sq feet) The thing is that this isn't the first time that i've run across this. I had an identical situation last fall with a seller who flat out refused to drop his price even $1 for an even smaller house (No surprise it's still on the market )

I could see a price like that if it had every extra feature conceivable (Everything updated and in perfect shape, a barn, a pool, gazebo or anything else that could be tacked on) But all I see in the photos is an average 2 bedroom, 2 car garage (Attached) house with all of the original fixtures. (Counter-tops, cabinets and a lot of 1960s era wood paneling) Now with that being said, I don't mind wood paneling or older cabinets etc; its a question of ridiculousness of what you're paying vs what you're getting. The ONLY additional selling point is that it has an extra albeit mostly rocking and hilly 5 acres of land. Still doesn't come close to justifying the price though as a number of reasonably priced houses in town have an equal amount of land.

What is wrong with people?

uhhh, bud. connecutt iz conettecut -Not New Mexico.

[elchivito]

I have a piece on the market right now and I'm not going to budge on the price. I've had offers from several who haven't done their homework on how fast local property has rebounded. It's a sellers' game hereabouts. Tough noogies.