Housing Bubble, credit bubble, public planning, land use, zoning and transportation in the exurban environment. Specific criticism of smart growth, neotradtional, forms based, new urbanism and other top down planner schemes to increase urban extent and density. Ventura County, California specific examples.
Tuesday, December 18, 2012
One of these things...
...is not like the other.
Picture one is current listings:
Picture two is recent sales:
Yeah, I know my 'hood is pricy but look at the price difference between what sells and what sits. Ain't nothing price won't fix.
If you ask too low, there's little chance (in the current market) that a buyer will offer you a better price. At the height of the bubble, I had a friend offer $30k over asking to try and make sure he got a property that had only been listed that week...
The determining factor seems to be local rents. $2500 per month cash flows for a lot of mortgage debt. If you put down 40% and finance 500k any appreciation is a huge return on equity. Rent for three, live in for two and bank huge tax free profits.
Thomas Stone said... Cinco-X, I disagree. From what I see if you price a little low you get multiple offers, as many as a dozen in some cases.
A dozen offers? Someone left some money on the table...Then you have to ask what you got for that money? Was it worth it to get the house to move fast? If so, then sure...price it low...
We're getting the multiple offers in the SF area again. In my neighborhood, we've had three recent sales. Each was put up for slightly under expected, had two weekend showings and took bids. One had three bids, the others more. All three sold for above asking.
No money left on the table if the market is right. Pricing under gets the interests and the bidding war brings it up to market.
7 comments:
If you ask too low, there's little chance (in the current market) that a buyer will offer you a better price. At the height of the bubble, I had a friend offer $30k over asking to try and make sure he got a property that had only been listed that week...
Judging by the low prices these must be 2/2 condos, eh?
Here's from 2007 on that cluster to the lower left:
http://exurbannation.blogspot.com/2007/08/flip-flop-flip-flop.html
Cinco-X, I disagree. From what I see if you price a little low you get multiple offers, as many as a dozen in some cases.
The determining factor seems to be local rents. $2500 per month cash flows for a lot of mortgage debt. If you put down 40% and finance 500k any appreciation is a huge return on equity. Rent for three, live in for two and bank huge tax free profits.
Thomas Stone said... Cinco-X, I disagree. From what I see if you price a little low you get multiple offers, as many as a dozen in some cases.
A dozen offers? Someone left some money on the table...Then you have to ask what you got for that money? Was it worth it to get the house to move fast? If so, then sure...price it low...
We're getting the multiple offers in the SF area again. In my neighborhood, we've had three recent sales. Each was put up for slightly under expected, had two weekend showings and took bids. One had three bids, the others more. All three sold for above asking.
No money left on the table if the market is right. Pricing under gets the interests and the bidding war brings it up to market.
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