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Honored Contributor
Posts: 24,105
Registered: ‎03-09-2010

@Mom2Dogs wrote:

@gardenman wrote:

Property values are constantly in flux. Locally, prices are nose-diving. A nearby home that sold for $140,000 in 2008, just sold for $26,000. Smaller houses here are now selling for $10-$30 a square foot. The bottom has completely fallen out of the local market. It's getting to the point where any offer is a fair offer. A large home up the road from me last sold for $350,000, but has been on the market for months at $149,900 with no takers. You have to know what's going on in your local market to truly understand what's a fair offer. Many of the local realtors haven't adjusted their asking prices to the new reality and their homes just aren't selling. You really need to know what's happening in your immediate area to know what's a fair offer.


@gardenman...That is a big drop in price, is there something specific happening where you live that would cause this.  In our area things are down but nothing like what you indicated.


Jobs here have largely disappeared. The DuPont Chambers Works used to be a big employer and then there was Ardagh Glass in Salem, but Ardagh recently shut down and DuPont is a shadow of its former self. With no jobs, high property taxes ($200+ per month at least and in most cases way, way more,) high auto insurance rates and most of the town labled as a flood zone after Hurricane Sandy (which truthfully had minimal impact around here) the bottom has pretty much dropped out of the local real estate market.

 

I've lived here all my life and I've never seen housing prices this low. There are just no buyers. Even if a buyer is interested, the large number of defaults locally has the banks keeping a death grip on mortgages. About the only way you can buy a house locally now is by paying cash for it. The banks are more than a little skittish and they've taken a beating. There are nine homes in my immediate neighborhood and only three are occupied. The other six have been let go back to the banks due to the drop in value. We should be getting near the bottom of the market, but it's ugly around here. A very large percentage of homes in the township have gone back to the banks and the banks are losing a lot of money.

 

The house that sold for $26,000 sat on land that alone was valued at $38,000. The bank basically paid the buyer $12,000 to take the house. It's crazy. There's a lovely little riverfront house with a great river view that's been on the market here for months and reduced in price multiple times. That house was completely remodeled and a few years ago would have been sold for well over $200,000. The last I saw it was now priced under $80,000 and still on the market. When the banks can find a buyer, any buyer, they're dumping the properties just to cut their losses. I don't know if we're on the leading edge of a national trend, or if this is a local blip, but it's ugly.

Fly!!! Eagles!!! Fly!!!
Honored Contributor
Posts: 25,929
Registered: ‎03-09-2010

@gardenman wrote:

@Mom2Dogs wrote:

@gardenman wrote:

Property values are constantly in flux. Locally, prices are nose-diving. A nearby home that sold for $140,000 in 2008, just sold for $26,000. Smaller houses here are now selling for $10-$30 a square foot. The bottom has completely fallen out of the local market. It's getting to the point where any offer is a fair offer. A large home up the road from me last sold for $350,000, but has been on the market for months at $149,900 with no takers. You have to know what's going on in your local market to truly understand what's a fair offer. Many of the local realtors haven't adjusted their asking prices to the new reality and their homes just aren't selling. You really need to know what's happening in your immediate area to know what's a fair offer.


@gardenman...That is a big drop in price, is there something specific happening where you live that would cause this.  In our area things are down but nothing like what you indicated.


Jobs here have largely disappeared. The DuPont Chambers Works used to be a big employer and then there was Ardagh Glass in Salem, but Ardagh recently shut down and DuPont is a shadow of its former self. With no jobs, high property taxes ($200+ per month at least and in most cases way, way more,) high auto insurance rates and most of the town labled as a flood zone after Hurricane Sandy (which truthfully had minimal impact around here) the bottom has pretty much dropped out of the local real estate market.

 

I've lived here all my life and I've never seen housing prices this low. There are just no buyers. Even if a buyer is interested, the large number of defaults locally has the banks keeping a death grip on mortgages. About the only way you can buy a house locally now is by paying cash for it. The banks are more than a little skittish and they've taken a beating. There are nine homes in my immediate neighborhood and only three are occupied. The other six have been let go back to the banks due to the drop in value. We should be getting near the bottom of the market, but it's ugly around here. A very large percentage of homes in the township have gone back to the banks and the banks are losing a lot of money.

 

The house that sold for $26,000 sat on land that alone was valued at $38,000. The bank basically paid the buyer $12,000 to take the house. It's crazy. There's a lovely little riverfront house with a great river view that's been on the market here for months and reduced in price multiple times. That house was completely remodeled and a few years ago would have been sold for well over $200,000. The last I saw it was now priced under $80,000 and still on the market. When the banks can find a buyer, any buyer, they're dumping the properties just to cut their losses. I don't know if we're on the leading edge of a national trend, or if this is a local blip, but it's ugly.- 


 

Where we live the property values are climbing steadily. We bought our house for $165,000 in 2010 - height of the crash - and it is now worth mid 200s. Homes in our plan sell within a week or 2 for exhorbinent prices. One neighbor just sold the house she paid $135,000 for in 2010 for $260,000 because her DH died and she wanted to stop snowbirding. He was a contractor and had done some improvements but not enough to double the value of the house.

Honored Contributor
Posts: 9,139
Registered: ‎04-16-2010

It depends on many things. There are many out there who offer a price that is, to be blunt, insulting as he11. In that case, I inform my agent I won't deal with them again and that's that. Beyond that:

 

WHen I've made an offer on a home, I look at the condition of the house, what the homeowners have done (or not done), the location of the home (busy street, end of a cul-de-sace) and what work I may have to pay for regarding upgrades or overall maintenance (pool or VERY extensive gardening).

 

I then look at the comps; in fact I study them carefully. I then look at what they paid for it (public records) as well as utilities (public records). After ALL of that, I make the offer. Often, it's around the asking price but includes down payment help, transfer taxes, etc (normal in my area). Sometimes, the price is WAY over the top and I'll offer a price based on the comps; I'm sure there were those that were insulted (lol) but being real- NO bank is going to give you a loan for a house that doesn't appraise and homes overpriced won't appraise, so..... yeah.

 

When I've sold my homes, I've based the price on the things I've just mentioned. "Fair" means something different to everyone; to me it's a price that doesn't s@crew either party involved.

Respected Contributor
Posts: 4,781
Registered: ‎03-10-2010

WoW....all of you are such a wealth of information.....the problem is all 3 of us (me, myself and I) are making the decisions and it's hard to get an unbiased opinion from somebody you know so I threw it out on the forum for your opinion.

 

Yes, the realtor is advising me but the neighborhood doesn't change, people just don't move within 2 square miles so it's hard to get comps. 

 

So far, received the offer and I'm countering, so we'll see where that goes.

 

 

Thanks so ALL!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Trusted Contributor
Posts: 1,789
Registered: ‎06-26-2014

@Just Bling wrote:

WoW....all of you are such a wealth of information.....the problem is all 3 of us (me, myself and I) are making the decisions and it's hard to get an unbiased opinion from somebody you know so I threw it out on the forum for your opinion.

 

Yes, the realtor is advising me but the neighborhood doesn't change, people just don't move within 2 square miles so it's hard to get comps. 

 

So far, received the offer and I'm countering, so we'll see where that goes.

 

 

Thanks so ALL!!!!!!!!!!!!!!!!!!!!!!!!!!!!


I'm not sure I understand that statement I bolded @Just Bling - but the buyers for the last house I sold moved into it from less than 2 blocks away!

I was actually worried about who would buy it because there are some very noisy neighbors in the cul-de-sac, and I put that on the disclosure paper.

I need not have worried with these buyers as they were completely familiar with that area.

 

Hmmm, perhaps what you're saying is that nobody in your area is moving right now. If that's the case than the realtor will have to cast a wider net for comps in order to check houses of similar size and age.

 

But you've recieved an offer and if it doesn't pan out there will be another.

Honored Contributor
Posts: 25,929
Registered: ‎03-09-2010

@Just Bling wrote:

WoW....all of you are such a wealth of information.....the problem is all 3 of us (me, myself and I) are making the decisions and it's hard to get an unbiased opinion from somebody you know so I threw it out on the forum for your opinion.

 

Yes, the realtor is advising me but the neighborhood doesn't change, people just don't move within 2 square miles so it's hard to get comps. 

 

So far, received the offer and I'm countering, so we'll see where that goes.

 

 

Thanks so ALL!!!!!!!!!!!!!!!!!!!!!!!!!!!!


Actually the people who bought our house moved from within the neighborhood. They wanted out of their large 3 story family home into one without so many steps to retire into.Many people move to a more appropriate size home when they get older but stay in their neighborhood.

When my first husband died I had to sell our expensive home and I moved into my grandparents large home with my stepkids and my grandparents moved into a small apartment on the property that was easier for them to care for.

Honored Contributor
Posts: 9,283
Registered: ‎03-09-2010

@Just Bling wrote:

WoW....all of you are such a wealth of information.....the problem is all 3 of us (me, myself and I) are making the decisions and it's hard to get an unbiased opinion from somebody you know so I threw it out on the forum for your opinion.

 

Yes, the realtor is advising me but the neighborhood doesn't change, people just don't move within 2 square miles so it's hard to get comps. 

 

So far, received the offer and I'm countering, so we'll see where that goes.

 

 

Thanks so ALL!!!!!!!!!!!!!!!!!!!!!!!!!!!!


This sounds like our neighborhood.  People buy and stay forever.  The last sale we had on our block was at least 12 years ago.

We would be at a loss as far as comps are concerned.