Home Buying in Edwardsville>Question Details

Jenny, Home Buyer in Edwardsville, IL

Hello! My family recently moved to Edwardsville and are looking to buy a house. We have excellent credit,

Asked by Jenny, Edwardsville, IL Mon May 11, 2009

are preapproved for our loan and have no contingencies since we sold our house before beginning to look. We have been looking for 3 months and find that the prices of houses are overpriced and it seems as if people here would rather keep their houses on the market for a year rather than price them to sell. We have also noticed the following trend: houses bought 2-3-4 years ago at decent prices are now marked up $40 to $50,000.00. Since we are new to the area we are wondering what is behind this mark up, esp. given the state of the economy? We are feeling very frustrated trying to buy a house at a fair price! Thanks!

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Jenny, $100 a square foot including the lot will buy you all the home you can imagine. Someone hasn't showed you the possibilties. Its buyers deluxe market and there are definetly deals to be had!
0 votes Thank Flag Link Tue May 15, 2012
Hi Jenny,
Did you ever find a home? A couple days ago the MLS featured 112 price reductions (4 in ED 2 of which were over 500 k ) and 33 closed. If you can reconcile your self with the statistics that Edwardsville real estate sells at a profit your resale value will justify the price. Call if you need assistance or answers.
Sincerely,
Marge Haworth
0 votes Thank Flag Link Thu Oct 22, 2009
Hi Jenny,

You are absolutely right about sellers wanting to wait the market out. Sellers can ask whatever they want, but the value is what a buyer is willing to pay. We are seeing sellers start to adjust their prices so if you are still in the market to buy a home, we would be glad to meet with you to discuss the local market. Sincerely, Carrie Michalik of The TLC Team with REMAX Alliance (558-2468)
0 votes Thank Flag Link Tue Aug 18, 2009
Hi Jenny -

No problem on the quick response - I'm happy to help.

It sounds to me like you are running into a situation were sellers are taking what they paid for the house and then tacking on the commission and building in room to negotiate. These are probably people that are not highly motivated to sell.

I can't say for sure if their agents are encouraging them to price their homes high - but, I can say that I personally do not conduct my business that way. If the home is not priced to sell in today's market, it simply wastes everyone's time. Not just the seller's time, but the time of the agent and potential buyers as well. Also, the house will not appraise if they were to get an offer.

From what you described there is no way those homes have appreciated that much, or that quickly - unless the owners added a ton of square footage in the basement and lots of upgrades.

If you are working with a buyer's agent, this is where they should step in. Ask them to do a little bit of research on the house before you go take a look. They can check the tax records, days on the market, look at the past listing information in the MLS. If the house was bought 2 years ago with an unfinished basement, and the current owner added 1200 more finished square feet in the basement your agent can find out. Also, your agent will prepare a market analysis on the house before you put an offer in. If that analysis comes in much lower than the current asking price, you will have evidence to support your lower offer.

You are definitely a very educated buyer. It is possible to find the home you're looking for at a good price. For example, we just had a buyer that bought a home in the low $200s for $180k due to a job relocation.

Have you tried putting in an offer on any of the houses? If you have, and you've done it directly through the listing agent, this could be another part of what is going on. Ethically that agent is only looking out for the best interests of the seller - the last thing on their agenda is getting you a good deal.

I'd be happy to help you further if you need it. Feel free to e-mail me at kristina.pratt@coldwellbanker.com if you would like to discuss it privately.

Have a great day, Jenny!

Kristina
0 votes Thank Flag Link Tue May 12, 2009
HI, and thanks for your quick response. We are looking in the mid 200,000's and a few examples..a house bought in 2007 for 235,000 is now going for 278,00...that is just one example of about 10...We can't figure out if realtors are advising their clients to mark up this much or if it si the client forcing these prices...I've heard that Edwardsville hasn't been hit and I am happy to pay normal appreciation, but 43,000 in 2 years? Another example...house bought in 2005 for 220,000 now asking 299,999???? I really wouldn't be posting if we had not done our home work and we can't figure this out. Thanks!
0 votes Thank Flag Link Tue May 12, 2009
Hi Jenny -

First, welcome to Edwardsville and thanks for posting your question here on Trulia.

It's hard for me to pinpoint the mark up that you are talking about without knowing your price range. Some of what you are experiencing is probably due to the following:

1. The Edwardsville School District is one of the top districts in Madison County, plus the location is very desirable. This helps homes in the Edwardsville market maintain their value.

2. Real estate markets are very local. The economic downturn has not affected prices here as much as it has in other areas of the country. Since we didn't have the high jump in price during the real estate boom of a few years back, prices are not down dramatically in our market. Still, you shouldn't be seeing that big of an appreciation in price over 2, 3 or even 4 years ago.

If you are using a buyer's agent they can help you navigate negotiations in this tricky market, and help you identify homes that are priced correctly. A good buyer's agent will save you time, money and frustration. If you are putting in offers with the listing agent of the homes you are interested in, that agent is working on behalf of the seller - so that means negotiations are done with only the seller's best interests in mind.

Working with a buyer's agent costs you nothing in our market. If you would like to learn more about how buyer agency works, feel free to contact me. I'd be happy to help you find a great home at an even better price. You can also learn about the Platinum Buyer's Program that my partner Nancy Milton and I offer our buyers on our website at http://www.justduckyhomes.com/buyers.html

Best of luck, and please let me know if I can help.

Have a great night!
Kristina
0 votes Thank Flag Link Mon May 11, 2009
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