What are they thinking?
I've been following the housing market in my area for the last couple of years -- first to sell our house and now to buy a house. We are currently under contract to buy. The market here isn't awful...but it isn't good either.
I am just baffled by many of the sellers that I see. When we had our house on the market I was constantly looking at comps, looking at feedback, trying to decide how to price, etc. We looked at the listing carefully, correcting any errors and had several pictures redone to look nice in the listing. I recognized when it didn't sell quickly that we needed to drop the price (we had followed our agent's advice which was too high) and the only debate was how much to drop the price. We did take our house off the market a few months when the listing expired but brought it back with a sharply lower price which resulted in a contract within a few days of relisting.
But...as a buyer I am just dumbfounded by so many listings. Just today I saw a house come back on the market with a new agent with a price drop of ....$0! Yes, there is a somewhat different worded listing, different pics (largely inferior to the old pics although there are more of them).
This was a house that we actually looked at and pulled comps on. It is similarly priced to other houses on the market in the subdivision, but none of them are selling. The ones in the subdivision that sold were for much less. The house just appeared clearly overpriced when we looked at it. So the sellers go to the trouble of changing agents after not selling in 6 months and have never had a price drop. What are they thinking?
I saw another house come back on the market yesterday that dropped its price by $900.
Another house was listing for a full year with only a $1 price drop in all that time. They were off the market briefly, switched agents and dropped the price $10k (not nearly enough).
We actually made an offer on a house that was somewhat overpriced and the seller made it clear they wanted a price that was very closing to listing price which we felt was way too high. So we walked. A few weeks later we found another house we liked even more (and was more reasonably priced) while the first house we offered on is no longer on the market.
I just don't get it. People certainly are free to say they don't want to sell at the current market price but if that is how they feel why are they dealing with the negatives of having to keep their house showing ready? That is, if not serious about selling, why bother at all?
I can understand being misled early on about the market price of your house. We were overpriced initially although we didn't realize it at first. But, as soon as we did we told the agent to reduce the price. Why on earth try to sell a house if you aren't willing to price it close to market price?