Let’s face it. There are basically 4 types of listings that all houses fall into:
1) The house nobody really wants that is overpriced.
2) The house nobody really wants that is priced right.
3) The house everybody wants that is overpriced.
4) The house everybody wants that is priced right.
Simply put, there are good and bad houses, with good and bad prices.
In any market and during any time of the year, the #4 houses will always sell fast. The #1 house will not. You can turn a #1 house into a #2 house just as easily as you can turn a #3 house into a #4 house with a price reduction. Sorry if you feel like you’re ordering for the office at McDonald’s with all the numbers here.
A lot of sellers have a house that isn’t all that appealing and they want crazy high money for it. I try to avoid those listings because I am not good at magic. I am only good at being a realtor.
So, how does all this relate to the market? Let me say this first. The market is always changing, just like the prices of anything…..stocks, oil, lobsters. It is all supply and demand. Here it is August 28th. We are on the downhill side of this year’s market. Most of the buyers have bought and most of the good new listings have sold. The buyers that are out there now don’t have as many terrific houses to see, so I am watching the ones that didn’t cut it in the spring/summer start to move now. Many were either loser houses or ones that needed price reductions. I checked the activity from the past week this morning. I noticed that 3 of the 4 pendings sales in the $300-400k range were houses that I have either shown or looked at for myself earlier in the year. Reason these finally sold is because there isn’t much that really screams AWESOME right now in that range. Think of it this way. It is 8:PM Friday night at a seafood place. There is a 100 gallon tank with only 3 lobsters. You pick the best of the three, knowing that if you got there at 5:30 you could have got a better one.
The only chance for that poor #1 or #2 house is to sell when that lobster tank is mostly empty. That is from now until the grass starts to grow next year. Once the grass starts to grow, the buyers come out. A couple weeks later, all the listings start hitting the market and the cycle begins again.