Home Buying in Chesapeake>Question Details

Jody, Home Buyer in 23323

Why are median listing prices going up while median sales prices keep going down?

Asked by Jody, 23323 Tue Apr 17, 2012

Is this the result of greedy homeowners/builders trying to cash in on a dead real estate market?

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5
Only the market will dictate the buy price. Listing price means nothing - especially if bank financing is used.
0 votes Thank Flag Link Tue Apr 17, 2012
Hello Jodi,

A seller has the choice of what value to list their home for sale. Sometimes sellers may list their property above market value. A good suggestion for buyers is to find out if the asking price is in line with prices of similar homes in the area? Your real estate agent can conduct research, called a "Competitive Market Analysis" or CMA, on comparable properties, to help you come up with an educated opinion on the worth of the property. The market will determine market value and what homes will sell for.

Thanks,
Carol Perdew
Prudential California Realty
(209) 239-7979
Carol@PerdewHomes.com
http://www.CentralValleyHomes.com
DRE 985176
0 votes Thank Flag Link Tue Apr 17, 2012
Some sellers feel "their" home is worth more than the others. Buyers are looking at comparable sales, and won't typically overpay. They don't care how the seller feels. If a seller will put themselves in the buyers position, they'll understand. You can always test the water, by submitting a realistic offer. When an offer is in writing sellers will sometimes surprise you with an amount they will accept. In Destin and Santa Rose Bch, Florida, we're seeing most submarkets increase in value. When activity increases, as it is here, prices will adjust to demand. As a seller, it's better to be "in the market" rather than "on the market."
0 votes Thank Flag Link Tue Apr 17, 2012
Yup. That must be it. Greedy homeowners and builders.

Though, as a homebuyer, you should be doing fine with median sales prices going down.

Make an offer for what the property is worth, not what those greedy sellers are asking. Obviously, others are doing that and succeeding if sales prices are going down.
0 votes Thank Flag Link Tue Apr 17, 2012
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
Consider that the LISTING PRICE is a number pulled out of the air:
The Seller may figure that that is what the house is WORTH to him, or
he may figure that that is what some unknowing idiot will pay him.

The common term is; "We can always come down!"

The problem is, if the Buyer is not interest in pursuing it further, the Seller will never have the chance to save the sale.

And then, when the Seller comes to his senses, and tells the Agent to lower the LISTING PRICE;
No only is the critical selling time passed, but the potential Buyers are asking "What's wrong with it?"

The Realtor is frustrated too, because they had a perfectly good opportunity to sell a house, and now, it's gone. His client didn't listen to him!

The VALUE of a home is not determined until a willing and able Buyer puts down the money to buy it!
The Seller's idea of the WORTH of the home, is meaningless!
0 votes Thank Flag Link Tue Apr 17, 2012
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