Home Buying in New Vernon>Question Details

Stan, Home Buyer in New Vernon, NJ

Why are so many homes in Harding listed for years at 2006 prices when it is supposedly a buyers market? No one is buying these overpriced homes and

Asked by Stan, New Vernon, NJ Sun Feb 21, 2010

one must wonder wheher they are serious sellers.

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4
Great Question Stan

The simple answers are ...

Its challenging for sellers as well as in-experienced agents to price homes accurately in a declining and or flattening market...Remember the vasty majority of the agents and sellers are going by most recent sales in the area of their property...great concept providing there is recent activity!

In areas like Harding and Mendham ... there are very few trades taking place..We track the market, sales numbers, price changes, under contract and Unsold very carefully to help our customers make the best decisions possible.. whether your buying and or selling...knowledge is power!

The bottomline, in markets that don't have alot of properties selling.. Your agent need a tremendous amount of experience, higher industry education (more than 60 hour license course) and years of experience to be able to forecast the market accurately....

In markets like Harding... Historical data is the answer... The challenge .. the information is easy to get... yet not easy to interpret..

Checking out this video should help give you a level of comfort and more of a understanding what i'm referring too!

http://www.youtube.com/watch?v=Ydmus7X6LZY

Stan, if your serious about buying a home in the Harding Area, please don't hesitate to call or email me directly with questions and or comments...

Best of Luck!

Sean T. Shallis
Broker/Sales Associate
Senior Real Estate Strategist

Weichert Realtors and The Shallis Group
15 Prospect St,Madison,NJ,07940 Office: (973)-377-4460
Direct: 201-427-1032
Cell: 201-988-1393
Fax: 201-427-1022
sean@theshallisgroup.com
http://www.theshallisgroup.com
0 votes Thank Flag Link Mon Feb 22, 2010
Hi Stan, you are right, buyers do not buy overpriced homes, they may nibble if inventory levels are low, but buyers are simply too well educated to pay an over-market price. But it is far more likely that buyers will simply continue to overlook homes that are overpriced. A home that has been on the market for years without adjustments to correct pricing will sit and the seller will look back with regret that he/she did not accept the truth of pricing. In our market, homes continue to sell between a 0-5% band of asking when that asking price is considered the homes "strike price" by the buying public. This holds true whether the seller wisely prices correctly from the get go, or insists on a painful reduction process. And if you review actual sales results, sellers that price right from the start - or adjust quickly if they miss the mark and by quickly I mean in the first 30 - 60 days - sell for more than those that price high and adjust over time.

This brings up another thought for sellers - I've lost many listing opportunities to agents who have massaged the seller's ego with an over-market price. To sellers I say don't be fooled by the the agents who simply parrot back what you want to hear - this short lived feel good strategy will cost you money in the end. Recognize that it takes courage - and frankly knowledge and experience - to deliver tough news. You want an agent that has those qualities and committed to putting them to work for you.

To buyers, a well constructed pricing analysis will immediately flush out overpriced homes and superbly guide and support your bidding process. Though the topic here is overpriced homes, it is important to note that the pricing analysis will also recognize when a home is priced right - and it is perhaps even more important to quickly recognize this because these homes will sell quickly and likely close or on - maybe even over asking. And though it may seem a bit incongruous in a buyer's market to pay on or close to asking, if the home is priced correctly it makes great sense and you are wise to get in there quickly and act decisively before a bidding war erupts. In the last 2 weeks, I've been involved in two situations with multiple offers so it is happening.

Remember the goal, pay a fair market price. Overpriced homes generally suggest a unrealistic or unmotivated seller, while properly priced homes reflect the opposite - sellers - and agents - that get it!

Respectfully,
Jeanne Feenick
Unwavering Commitment to Service
Find success at http://www.feenick.com
Web Reference: http://www.feenick.com
0 votes Thank Flag Link Mon Feb 22, 2010
Hi Stan,

Many home sellers still want to
Web Reference: http://www.JaneAsdal.com
0 votes Thank Flag Link Mon Feb 22, 2010
Hi Stan,

They are obviously not serious sellers if they have been on the market for years. However, the median home price in Harding is way down from 2006 levels. $800,000 in the last 12 months compared with $1.6 million in 2006. So some of the residents in Harding have adjusted to the new reality. Those that have not adjusted will continue to sit on the market indefinitely. Most will ultimately have their listings expire and just stay put.

-Marc

Marc Paolella
Relocation Director/Appraiser
Century 21 Joe Tekula Realtors
Phone (direct): (973) 584-4235
Web: http://www.marcpaolella.com
0 votes Thank Flag Link Sun Feb 21, 2010
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