Realtors: Sellers becoming more realistic on home prices, buyers less so
A new survey of Realtors out this morning from HomeGain finds that the perception of what a home is worth right now is still very much in flux.
Home sellers, a survey of 1,150 Realtors nationwide found, are finally getting the message that their house may not be worth quite what they’d like it to be. The survey found 36 percent of homeowners think their house should be listed 10 to 20 percent above what their Realtor thinks it should be. That’s better than the 45 percent reported three months ago.
Buyers, on the other hand, are becoming ever more focused on deals. Sixty-four percent think houses are overpriced right now, compared to 59 percent three months ago, the surveyed Realtors said.
“The results of our second quarter Realtor home prices survey indicates that home sellers seem to be getting the message that perhaps their homes are not worth as much as they thought they were,” said Louis Cammarosano, HomeGain’s general manager. “While buyers are expecting to find a bargain on every corner.”
Overall, Realtors agree that the market is down - 84 percent told the survey that their clients’ home values have decreased in value over the last year (12% said values are unchanged and 3 percent say they’ve gone up). Their opinions about the future are very mixed: 49 percent say values in their market will stay the same over the next six months. 22 percent say values will increase. 29 percent said they’ll fall.
For more on the HomeGain Second Quarter Realtors Survey, click here.
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I’m going with the buyers. They won’t pay more than they think a house is worth. What the buyer will pay IS market value, no matter what a seller or realtor thinks it’s worth.
that first comment is the dumbest thing I have ever heard. So if all the buyers decide that homes are worth less then they become worth less only because buyers think that. There is a value (the cost of materials) that is a floor for home values. Study up on economics before you open your mouth.
Dear Tom. Perhaps you are the one who should take a course in economics. The cost of materials is of no concern when pricing a home or considering the best use of an existing asset. Not that they don’t play a major part in the development of the asset when it is initially constructed. On resale these are considered sunk cost and will not be a major factor in deciding what to do with the underlying asset, particularly when the value is of the asset is depreciating rapidly. The only concern is what is the total cost of holding onto the asset or proceeding forward with a special use for an asset on a net present value bases factoring the cash flow of the life of the asset or life of the project. At this point from a business stand point what you already have invested in the asset is somewhat immaterial. In the case of housing the value of the material would be a sunk cost. You cannot retrieve this cost of material or separate it physically from the house therefore it is not a factor in evaluating the value of the house. The location and condition of the property are far more important in assessing a real market value for the property. It is not an easy question to answer but surly you’re oversimplification of the problem is without merit.