Your Neighbors House…
Written by John on February 24th, 2010. Filed under Uncategorized and tagged with CMA, Comps, JohnMartinHome, Real Estate, realtor, REO, Richmond, Short Sale, Virginia, Williamsburg.So, your neighbor purchased his house back in 2001 and has decided to take full advantage of equity and the market. He decides to put his house on the market for 450,000 and you have an almost similar home listed for 525,000. Obviously these numbers are even for example purposes. So, the neighbors house puts you in a situation, do you drop your price to compete or keep trying to hold on to value. Its a difficult spot and it all comes down to motivation. One seller decides to chase the market as most sellers are doing these days and the other caught it. Seller number 2 purchased in 2007 and most likely can only go so far in negotiations. Most sellers don’t want to bring money to the table, especially to cover commissions, can’t blame them. But lets say the second seller that purchase in 2007 makes up the difference on a new house purchase. He or she is transferring the market. Most buyers will make huge gains in price reductions and or get a really good deal. Figure you will do the same on the next house. Its all a difficult way of looking at the market, but eventually we will be at normal sales prices and hence the return of the good days. Well, OK days will do at this point