The opposite is true when the market is going up. Is your market going up or down?
Look at the number of Listings over $1m and the number of Sales in the last month, two, three, four, five and six month period. What is the average number of Sales, and what is the current Inventory? It might be that there is an Over Supply.
The upper end market segment may have held better than the lower levels. The lower levels started declining in March, 2006 in Redlands. In Feb. I gave a presentation at the Library to a group that was interested in the future of real estate price trends, and predicted a 25%-50% drop in prices. The reaction by the press was negative, because there had been no measurable declines, and none of the nationally quoted real estate writers has mentioned it. The rest is history.
Post Madoff, high end buyers became fewer. Prices at the high end began to soften in 2009. Now, there is an over supply as more hang on the market and do not sell. Selling at any price today, may be much better than not selling at all in the next year..
This is a terrible time for home sellers..... we are in a buyers market so to speak, just because we have more properties available in most if not all markets and so many fewer ready and willing buyers, everybody is careful and many buyers need to sell existing properties before they can buy a new one. So it is a very tough market.
And with the luxury market having even less potential buyers it will be even more difficult.
Appraisers will try to stay as close to the most recent sales as possible and often they will have to even look at homes on the market if not enough properties of that kind are available. The banks are very careful and many times they send the appraiser out again to bring more comparable information.... So you may have to
consider that you will not be able to sell your home at the old appraised value ...... It will be worth what a ready and willing buyer is ready and willing to pay for your home, and your choice is to negotiate as best as you can and then either accept of reject the offer. Which really depends on your individual situation, why you want or need to sell your home and what your next plans are....
But I do feel for you, it is a terrible time to sell property, but you have not had your home on the market for a long time right? So that is probably another point to think about it may just take longer for you to get it under contract than before.
Do you work with a Realtor? What does he or she say about it?
Hope this helps a little.... If you would like me to refer a local experienced real estate agent to you who knows Redlands CA well, I would love to do so and pass on the information of a trusted Realtor Colleague of mine. Just let me know! email@example.com
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