bigq
06-11-2006, 06:30 AM
The Arizona Republic reports on the May numbers. “Stubborn home sellers holding out for big money are clogging metropolitan Phoenix’s housing market. Too many of these homeowners haven’t shaken off the hangover of last year’s home-buying binge. Market professionals say many owners continue to believe that the neighbor who sold for top dollar last year set the market price, not the other neighbor who cut thousands from the listing price before selling last week.”
“‘People are unrealistic about what their homes are worth,’ said (realtor) Brooke Castaneda. ‘A lot of sellers thought their homes would have these phantom profits. They’re not accepting that that isn’t the case anymore.’”
“The Valley’s housing market is unrecognizable from a year ago, when there were about 9,400 houses on the Arizona Regional MLS system in May. Now, the figure exceeds 43,000, a record.” WOW
“Housing experts blame some of the longer selling time on overpriced houses, which linger on the market and push up inventory. That sends a message to buyers: There are plenty of houses. Keep shopping. Hold out for a bargain. With sellers not selling and buyers waiting, the market can falter. That’s not good news in metro Phoenix, where at least $1 of every $3 generated in the economy comes from housing.” WOW Again
“Some owners have put their homes on the market simply to see how much they can get for them. Those sellers stick to their unrealistic sales prices because they don’t need to sell. Motivated sellers are beginning to drop their prices, in some cases by tens or hundreds of thousands of dollars.”
“But some sellers must stick to their prices even if they are too high because they tapped their home equity with credit lines, assuming last year’s big gains in appreciation would continue. Now, these owners must sell for a certain figure to pay off all the home’s debt. Some of them have contracts to buy new homes and are expecting to make a target amount on their existing home to keep their new mortgages affordable. They’re stuck in an equity trap.”
“‘They have to be more stubborn,’ said Joel Auernheimer an agent in Phoenix. ‘They have to sell it at market price plus $20,000 so they don’t have to bring cash to the closing.’”
“Buyers see listings climbing, houses lingering on the market and price being reduced and conclude that the signs are pointing to an eventual drop in prices. So they wait.”
“Agents say investors are dispassionate and realistic about setting prices. Typical homeowners may have a stronger connection. Those sellers use a different method to calculate value and can be insulted when a potential buyer disagrees. ‘It’s an emotional thing,’ said (realtor) Diane Watson. ‘It’s a matter of pride. They think their home is going to defy the law of supply and demand.’”
“Tricia Urata of Queen Creek and her husband are trying to sell their house, but they think they set the price too high based on an agent’s advice. The couple listed the house for $339,000 in March and signed a six-month contract with the agent.”
“Now, Tricia Urata says no serious buyers have looked at the house and the agent won’t cancel the contract or lower the price, which Tricia thinks should be about $289,900. She is worried that buyers will ignore the house during the crucial summer selling season and wonders if she and her husband will be able to move into the new home being built for them.” WTF????
“‘We are very unhappy with our own experience,’ she said. ‘I don’t think we’ll ever sign with a Realtor for more than 60 days, and we won’t sign with anyone who says we can’t cancel at any time.’”
My question has to do with the last two paragraphs. Can an agent really dictate the price and not lower it? I understand not being able to get out of the contract, but I would think the homeowner could at least have a say in the listing price. :rolleyes:
“‘People are unrealistic about what their homes are worth,’ said (realtor) Brooke Castaneda. ‘A lot of sellers thought their homes would have these phantom profits. They’re not accepting that that isn’t the case anymore.’”
“The Valley’s housing market is unrecognizable from a year ago, when there were about 9,400 houses on the Arizona Regional MLS system in May. Now, the figure exceeds 43,000, a record.” WOW
“Housing experts blame some of the longer selling time on overpriced houses, which linger on the market and push up inventory. That sends a message to buyers: There are plenty of houses. Keep shopping. Hold out for a bargain. With sellers not selling and buyers waiting, the market can falter. That’s not good news in metro Phoenix, where at least $1 of every $3 generated in the economy comes from housing.” WOW Again
“Some owners have put their homes on the market simply to see how much they can get for them. Those sellers stick to their unrealistic sales prices because they don’t need to sell. Motivated sellers are beginning to drop their prices, in some cases by tens or hundreds of thousands of dollars.”
“But some sellers must stick to their prices even if they are too high because they tapped their home equity with credit lines, assuming last year’s big gains in appreciation would continue. Now, these owners must sell for a certain figure to pay off all the home’s debt. Some of them have contracts to buy new homes and are expecting to make a target amount on their existing home to keep their new mortgages affordable. They’re stuck in an equity trap.”
“‘They have to be more stubborn,’ said Joel Auernheimer an agent in Phoenix. ‘They have to sell it at market price plus $20,000 so they don’t have to bring cash to the closing.’”
“Buyers see listings climbing, houses lingering on the market and price being reduced and conclude that the signs are pointing to an eventual drop in prices. So they wait.”
“Agents say investors are dispassionate and realistic about setting prices. Typical homeowners may have a stronger connection. Those sellers use a different method to calculate value and can be insulted when a potential buyer disagrees. ‘It’s an emotional thing,’ said (realtor) Diane Watson. ‘It’s a matter of pride. They think their home is going to defy the law of supply and demand.’”
“Tricia Urata of Queen Creek and her husband are trying to sell their house, but they think they set the price too high based on an agent’s advice. The couple listed the house for $339,000 in March and signed a six-month contract with the agent.”
“Now, Tricia Urata says no serious buyers have looked at the house and the agent won’t cancel the contract or lower the price, which Tricia thinks should be about $289,900. She is worried that buyers will ignore the house during the crucial summer selling season and wonders if she and her husband will be able to move into the new home being built for them.” WTF????
“‘We are very unhappy with our own experience,’ she said. ‘I don’t think we’ll ever sign with a Realtor for more than 60 days, and we won’t sign with anyone who says we can’t cancel at any time.’”
My question has to do with the last two paragraphs. Can an agent really dictate the price and not lower it? I understand not being able to get out of the contract, but I would think the homeowner could at least have a say in the listing price. :rolleyes: