Smart sellers

No one’s going to steal theirhouse! Just heard of yet another story of seller idiocy where a seller who priced his house at almost $4 million a year ago and dropped it to $2.8 with great reluctance, rejected and refused to counter an offer of $2.5. Now just consider: the assessed value is $1.7 million, the house needs at least a milion dollars in renovations because it seems not to have been touched in the 120 years since it was built and the pool of buyers willing to do that kind of renovation is increasingly shallow. So after a year and a half, one finally shows up and you turn up your nose? The only encouraging thing about this tale is that it is common, and sellers daunted by the huge inventory presently afflicting our market can find some solace in knowing that much of it isn’t really for sale.

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3 responses to “Smart sellers

  1. anonymous

    One doesn’t become a codger living in a $2MM dump if have any financial competence

  2. xyzzy

    If the small sample of homes I saw this weekend are a good representation of all of Greenwich, then most of the homes on the market aren’t for sale.

    Its like people putting up their GE stock for sale at $40 and saying it was worth that in August of 2007 I’m not letting people steal it for 12.00 now!

  3. Paco

    FWIW, I’d say realtor/seller insanity is everywhere and in every price range.

    I learned this weekend of two situations in our remote Western mountain region where retirement/seasonal home land recently came on the market at 100% higher prices than parcels of adjoining land most recently sold for two years ago. The realtor told an adjacent property owner that “everyone” – meaning realtors and supposed sellers – has decided to just “balls through” the current situation without lowering prices.

    Land and house closings here are down 66% year-to-date from two years ago but the median closing prices remain about the same. Our genius realtors interpret this as an indication that prices haven’t fallen “too much.” They ignore the fact that a 3,400 square foot house in excellent condition with several acres of land and a fantastic view just sold – after 14 months on the market and a 26% reduction from its original asking price – for about the same price that a spec builder recently asked for a non-descript 1,700 square foot cabin on a tiny lot with no view whatsoever.

    On the local rent-until-we-can-sell-for-the-price-we-want front an owner asking $800,000 for a recently built house received in a divorce settlement just rented the place for $1,000 a month. This makes them think the house will ever sell for $800k because…? As they used to say “Why buy the cow if the milk is (almost) free.”