MLS, market, foreclosures, realtor

marys1000March 3, 2013

I saw a listing I was interested in on the MLS and contacted a realtor. My concern was that the listing was overpriced. They had just remodeled the kitchen and tacked that on the 'normal' price. Now in a good market I guess you would expect to get your money back on a kitchen. But I live in a mid sized midwestern city that isn't ever going to have a great financial recovery (Dayton). So while we didn't have a big run up, we did have price depression, lots of forexlosures, lots of inventory. This is a nicely maintained 1958 bungalow basically and they put in quartz counters (which I'm luke warm about) tile floors (which I don't like), nice cabinets which are pretty and put the stove all buy itself across the kitchen which I hate.

The realtor told me that inventory is down, things are looking much better.

My questions - when he says inventory is down - is that because he isn't including foreclosures? I think he said it went from 12,000 to 6,000. Because i see lots of stuff hanging out there that's been there for a long time.

I guess I just don't trust his rosy outlook. I told him I would have to get a price that would allow me to sell in 4-5 years without losing money or getting stuck with the home. Between taxes, realtor fees I feel I would have to get a good price. On this particular house it would be a significant price reduction which I think the sellers would be insulted by.
He seemed unconcerned by my time frame and price/resale worries.

With the MLS open I usually find what I want to see. But I find it hard to really understand the market here, or maybe I'm just having trouble trusting my gut vs realtors. The county auditors 2012 records seem incomplete compared to houses sold on zillow.

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Mick Mick

I say that you make the offer and see what happens.

    Bookmark   March 3, 2013 at 9:23AM
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kellienoelle

I agree to make an offer and see what happens. What's the worse that could happen? They turn you down and you move on with your search.

Just FYI from my recent experience, the market has picked up and inventory is low so buyers can be a bit more stubborn on their pricing. You may see this more and more as you are looking. What I noticed is that the nicer new listings were snatched up close to immediately! If you have a deadline for moving, you may have to be a bit more flexible unless you are willing to take on one of the foreclosures or houses that have been out there for a long time and do the work yourself! Good luck.

    Bookmark   March 3, 2013 at 10:12AM
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kirkhall

Make an offer, with your OWN agent. Your story sounds like you contacted the sellers agent. Don't take his word for it! He's trying to get the best price for his clients, the sellers!

Find your own agent, have them give you recently SOLD information for houses like the one you are considering and find a price close to that to offer the sellers.

    Bookmark   March 3, 2013 at 11:58AM
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linda117117

I believe the realtor deemed you as a tire kicker. If someone called me with the questions and comments you made about getting the house for a low price so you didn't lose money in 5 or 6 years or the cost of taxes and realtor fees, and felt the house was over priced before even seeing it, I wouldn't waste much time with you either

I had a call the other day from a man. During the 10 minute conversation, he gave me a laundry list of things he wanted in a house. He also mentioned a few houses he wanted to see that we're "overpriced". His list was unrealistic for his price range and two of the so called "overpriced" homes already had accepted offers. Once he told me he had been looking for 2.5 years, he lost my complete attention to try to help him find a home. Some people are not real buyers. I think this is how the realtor viewed you. You yourself said you have a hard time understanding the market there. That being said, how can you be sure the house is overpriced?

    Bookmark   March 3, 2013 at 8:45PM
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LuAnn_in_PA

" My concern was that the listing was overpriced."

"This is a nicely maintained 1958 bungalow basically and they put in quartz counters (which I'm luke warm about) tile floors (which I don't like), nice cabinets which are pretty and put the stove all buy itself across the kitchen which I hate. "

Your likes and dislikes are irrelevant to that house's price.

    Bookmark   March 3, 2013 at 9:09PM
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ncrealestateguy

OP... you say that the county's tax records are incorrect when compared to the data on Zillow. I bet it is the other way around.
It sounds as though you are relying upon Zillow's pricing (from your other post). Don't do this. Hire a buyer's agent and have them prepare a market valuation to determine its' value.

    Bookmark   March 4, 2013 at 7:49AM
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marys1000

LuAnn - I realize that my dislikes re the kitchen remodel have no impact on the price. What I was conveying, was that they seem to think that over updating their kitchen re the style and size of the house means they could ask for the cost of updating in their price - that did not work for me. But it could for someone. Its always possible that someone is willing to pay for something they really want.

ncrealestateguy - I did not say that the county records were incorrect. I said they were incomplete. They have a section where you can pull the last week, month, year, of solds but when you look on zillow there are many more. The county doesn't have them all entered for some reason.

Linda - I am sort of a tire kicker. I asked him for information via email and he provided it. I had gone out and driven by the property but not asked to go in till I had seen it and like what I saw outside versus the price. For me siting and the outside is key.
I did not say only that I have trouble understanding the market - but in terms of trusting my gut vs what they are telling me. My trouble understanding the market is because I keep getting this rosy picture from realtors that does not seem born out by what I see. Had I not trusted my gut 5 years ago I would have bought when I got to town as planned and be underwater now. Of course realtors were still denying that any meltdown would hit here.
So part of my issue is that I don't feel like I'm getting the real story.
My 'informed' gut tells me that I want to be able to sell in 4 years I should stick to popular neighborhoods with base personnel. Which of course is not what I want or am looking at. That if I'm going to buy a small older house on a couple of acres tucked on the side of one of the less popular housing areas (schools, high taxes) with base personnel; I better get a good price because its going to be a bit of a niche market anyway and without base interest it will be hard to do and not lose money. That's what I think.

If I were planning on staying here for 15 years I wouldn't be worried about it.

This post was edited by marys1000 on Mon, Mar 4, 13 at 11:43

    Bookmark   March 4, 2013 at 8:41AM
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terriks

Now in a good market I guess you would expect to get your money back on a kitchen.

Not true. Even in a good market you shouldn't expect to recoup the cost of a kitchen remodel.

    Bookmark   March 4, 2013 at 12:16PM
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kirkhall

I am not sure it is ever advisable to buy a house if you plan to only live IN THE AREA for 4 yrs... unless it is base housing where 4 years is a long time in 1 place. Unless, you plan to have the house as an income property and rent it out after you move.

Your best bet is probably to continue to rent. 4 yr timeline is quite short.

    Bookmark   March 4, 2013 at 12:41PM
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marys1000

Re kitchen and bath remodels. I'm fairly sure that a lot of people expect to get a return on a remodel. This is what they are told by a lot of industry experts, websites, etc. I read it all the time.
http://www.remodeling.hw.net/2010/costvsvalue/division/east-north-central.aspx

The 4 yr thing is tight. I would consider the quality of life worth the price if (1) If I broke even and didn't lose money (2) I could even be assured of selling. These old dying manufacturing midwestern cities are tricky

    Bookmark   March 4, 2013 at 2:10PM
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sheilajoyce_gw

Zillow's information is notoriously inaccurate.

    Bookmark   March 4, 2013 at 10:31PM
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tilenut

I'm preparing to sell a home in the Dayton market. We plan a partial kitchen remodel with new ss appliances, cabinet doors and granite, painting whole house, and of course any repairs and some new electrical fixtures as well. We don't expect to recoup any of these costs, as the comps won't support it (nicest home in the neighborhood already) We're doing it because we can, and to promote a quick sale. Bottom line, you can recoup some of reno costs if comps support it, but should not count on it.

    Bookmark   March 4, 2013 at 11:25PM
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marys1000

A Daytonite! Sounds to me like you are being super reasonable about pricing. What is your sense of the market? Realtors and the MLS website say things are looking better, but I still that that depends on the area.
I sincerely wish you well in your sale.

    Bookmark   March 6, 2013 at 12:58PM
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tilenut

Thanks, Mary. Realtors tell me that well- priced homes do sell quickly, especially in the lower price ranges, (under 150,000) which unfortunately we're not in. We'll see!

    Bookmark   March 6, 2013 at 7:29PM
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