DIYbanter - View Single Post

(Joe Doe) wrote in message ...
In article ,
(Arulmozhi) wrote:

The fact that the house has been on the market for over a year with
progressive price reductions with no takers scares us a lot. Why is
this house not selling?

This would seem to indicate that a years worth of buyers think the price
is not worth it to them in its present condition. You describe the
market in your area as insane and in an insane market if a house sits for
a year it gives you an idea of what the resistance is going to be like in
a tougher market.

Sorry if I gave you the wrong impression. The market in our
neighborhood of New England has reached a stalemate. Prices are at
insane levels but sales volume is falling and inventory is building.
There is still strong resistance from sellers to lower prices but
buyers seem to be digging their heels in preparing for a long haul.
The market has slowed down significantly since last year although the
realtors would have you believe otherwise.

You also seem to suggest that the house is discounted
relative to the area yet buyers do not seem to materialize. This again
seems to indicate strong resistance. Assuming no structural problems and
your analysis of the negative as being no garage/bad floorplan is correct
you have to ask yourself if you could correct these deficiencies for the
$$ difference between this house and what you think other houses should
sell for. You should also be certain that you are in a financial
position where you could sit on the house for an extended period should
you be put in a position where you are forced to sell because the market
is already telling you that this house is difficult to sell in a hot
market.

Roland

This is precisely the kind of analysis that I am currently engaged in.
Valuation is very key in this transition market and it is very
important to protect downside risk as you are suggesting. Since this
house and in general the market is not going anywhere for now I am
going to take my time to decide. I will be a little disappointed if
this house gets bought meanwhile but will learn to live with it. The
interest rates are not going up anytime soon (at least until the
elections are over next November anyway).