Changes in housing market shift balan...

Changes in housing market shift balance of power | BUSINESS | A...

There are 43 comments on the Asheville Citizen-Times story from Mar 1, 2008, titled Changes in housing market shift balance of power | BUSINESS | A.... In it, Asheville Citizen-Times reports that:

Three years ago, selling a house in the Asheville area was a relatively painless affair that sometimes involved choosing between two or three offers from buyers.

Join the discussion below, or Read more at Asheville Citizen-Times.

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Keep in mind

Asheville, NC

#1 Mar 2, 2008
To those selling a house, keep in mind, the person you hire, generally a realator, is looking to making a living from the sale of your property and others. So the bottom line is, they need money to support their lifestyle and as such it would seem they want to get you to let them set the price you sell at, for your good, well you figure that one out.

Recently sold a house myself and made a comfortable amount on it, did not use a third party to handle the sale and used easy to find contracts and forms to use and an attorney to handle the legal stuff. Cost to sell the place to me was the tax stamps and a small fee for the lawyer.

Saved a bundle doing it myself.

Thnikk about it folks. Third party or do it yourself.

By the a way the house sold in three days.
Margo

Lincolnton, NC

#2 Mar 2, 2008
Keep in mind wrote:
To those selling a house, keep in mind, the person you hire, generally a realator, is looking to making a living from the sale of your property and others. So the bottom line is, they need money to support their lifestyle and as such it would seem they want to get you to let them set the price you sell at, for your good, well you figure that one out.
Recently sold a house myself and made a comfortable amount on it, did not use a third party to handle the sale and used easy to find contracts and forms to use and an attorney to handle the legal stuff. Cost to sell the place to me was the tax stamps and a small fee for the lawyer.
Saved a bundle doing it myself.
Thnikk about it folks. Third party or do it yourself.
By the a way the house sold in three days.
So your point is realtors want to sell your house for less (and get a lesser commission) and also don't sell it very fast (so they won't be paid any time soon). You think they are working everyday just to screw around with whoever might want to sell a house? Just a huge realtors practical joke? You are screwy.
Not surprised

AOL

#3 Mar 2, 2008
One of the biggest problems which Bush, Bernanke and others are finally stating openly as of last weeks emergency meteing at NYC Fed Reserve central, was the brokers involved in past real estate deals; talking about realtors, appraisers, mortgage brokers and other middlemen who all caught by greed, helped propell residential real estate prices into the stratosphere to what we are seeing unwinding today.

In today's day & age you do NOT need a middleman to do your work! You can sell anything yourself and save a tremendous amount of wasted dollars helping to add to selling your home faster in fact as the above poster stated.

With new banking regulations and stricter lending requirements, unless you have a FICO of say 740, you will be out of luck. Also the FDIC is making preporations for many bank failures coming across the USA too. And the 3 major credit bureaus now have changed listing parameters and all derrogatories regardless of circumstances on the individual, now stay minimum 7 years and some can go 10-15 years on your credit report (no more 3 or 5 year limits), further keeping credit scores lower for longer term of time; and essentially will work against many people who can afford payments verses rents, but because of an outdated credit system, will be prohibited from owning a home forst time or say coming out of a divorce... This all will only add negatively to the already historical amount of unsold, sitting homes on the real estate market nationally..
erjo

Zionsville, IN

#4 Mar 2, 2008
I think what he is trying to say is that realtors have much more on their minds then just selling your house for the largest profit (their days on market stats, effort to sell versus revenue made, etc.). Read the section in Steven Levitt's book Freakonomics-it give a great explanation why realtors may be more inclined to devalue your house.

I'm not saying realtors are bad, we sold all 3 of our houses with realtors. Just saying you need to be an active participant in all aspects of the sale of your house.
Alden

Tampa, FL

#5 Mar 2, 2008
That first post was hilarious. I love finding for sale by owner seller like them. Either they got lucky (extremely rare) or in reality they sold the home for under market value. For example I recently came accross one that was asking 199k for his home and knowing that it was below market I quickly snapped it up and then sold it 45 days later for 45k profit (after realtor fee's and other closing costs).

As for the article, there sure are a lot of people with rose colored glasses on. The end of the article Summey says "down markets tend to hit Asheville later than the rest of the country, that the local market tends to recover after the nation as a whole and the climb out of a bad market tends to mirror the slide in". This is about as realistic as I've heard, but unfortuneatly for Ashville it's still not quite true. Asheville is going to see strong depreciation over the next 3 years... think double digits per year. Buyers coming from other area's are going to compare what they get for the money and Asheville is WAY too expensive in comparison. I'm not saying it will get as cheep as other similar or larger cities in the region, but for now it is 30%-50%+ more expensive and buyers will not pay that big of a premium anymore. Don't believe me? If your selling just keep your head in the sand and look up in 3 years. I'm in Sarasota, FL and we haven't even hit bottom yet despite that we have lost 50% in values and have another 20% to go in most areas. What do you think that does to the buying power of those looking to move? Add to the fact that construction costs in Florida are much higher (concrete construction, barrel tile roofs, hurricane windows, etc.) Sarasota is one of the top 5 most expensive places in Florida and is already much cheaper than Asheville for a comparable home/neighborhood.

In closing. My family is relocting to Asheville this summer. We will rent for a 2-3 years and then buy when things have dropped 20%-30%.

“Dimensions Beyond Left & Right”

Since: Feb 07

Asheville

#6 Mar 2, 2008
Lots of folks sell their property FSBO. No problem with that. If you have the time, marketing resources, negotiating skills and sufficient knowledge of North Carolina real estate law (yes, there are a few things you have to know, even if you hire a lawyer), there is nothing more you really need.

To me, its like working on your own car to save mechanics fees or rennovating your own house to save plumber/electrician/carpentry fees. If you have the time, patience, tools and expertise to do that, its great. I've known plenty of people who save money that way too and never go through a middle man.
Willis

Lincolnton, NC

#7 Mar 2, 2008
Alden wrote:
That first post was hilarious. I love finding for sale by owner seller like them. Either they got lucky (extremely rare) or in reality they sold the home for under market value. For example I recently came accross one that was asking 199k for his home and knowing that it was below market I quickly snapped it up and then sold it 45 days later for 45k profit (after realtor fee's and other closing costs).
I have done the same thing in Asheville. But most in Asheville unfortunately think their property is worth more than it is. That trend will continue as the markets continue to cause devaluation. FSBO's stay on the market forever here because they do not know how to set the price. That is the norm but you can still find those FSBO's that have no idea and undersell the property.
slidejuststartin g

Newport, NH

#8 Mar 2, 2008
No need to rush out and buy, Asheville RE is just starting to tank. Economy is entering a nasty recession and places like Asheville are behind the curve. Sure, the hipsters, trust funders and floridiots are still crowding into a formerly chill spot, but the job situation here is what will sink the mkt. As long as prices rose people ignored the lack of jobs, but now that will change.
fed up with 6 percent

Boiling Springs, SC

#9 Mar 2, 2008
there are other alternatives to paying 6 % or selling by owner. I thin it is rediculous to have to pay 6%. that should be negotiable. there are companies that will list you house for less. I did some research and there are a few in asheville, like Audrey Ann profesionalls, that will list for less than 5%. I think they were 4.75 last time I checked. that can make a huge dfference if you have to sell your house and dont have a lot of equity. you can save alomost $4,000 on a $300k house. when I moved to Asheville, I was able to negotiate, and saved a lot. here they dont even talk about it.
Truckin

United States

#11 Mar 2, 2008
slidejuststarting wrote:
No need to rush out and buy, Asheville RE is just starting to tank. Economy is entering a nasty recession and places like Asheville are behind the curve. Sure, the hipsters, trust funders and floridiots are still crowding into a formerly chill spot, but the job situation here is what will sink the mkt. As long as prices rose people ignored the lack of jobs, but now that will change.
The people moving in don't necessarily need jobs (retirees, independentaly wealthy, second home owners) and those that do tend to work in recession proof industries (i.e. non-manufacturing).
Wondering

Great Falls, MT

#12 Mar 2, 2008
I've sold two homes in the past three years as a FSBO, however in both cases I offered a 3% commission if a realtor sold it for me and in both cases, they did. I am really glad because I wasted time in each case with individuals who were not qualified and could not get loans.
linn

Grand Rapids, MI

#13 Mar 2, 2008
I think buyers(and most of the population)knows the economy is going to get much much worse and they are setting and waiting for better prices and to see exactly how upside down our economy really is...The GAO just last week came out with the "real" numbers on the economy through Dec 07.Total gov debt..Federal,State sectors,unfunded ss contingent liabilities along with unfunded Medicare/Mediciad,Fed pensions and other foreigner and domestic debt is $72.7Trillion.When Bush took office in 01 our total debt was $27T.Bush has run up some $46T in new debt..Almost more than all past presidents.The National Debt as a Percent of Gross Domestic Product is "72%!!!!!!" When is country finally gets competent leadership we may be talking about the D word...Just my opinion
lee

Clover, SC

#14 Mar 2, 2008
Just want to sell my place and get the hell out of N C. Taxes are crazy.

Since: Dec 06

Eddyville, KY

#15 Mar 2, 2008
Margo wrote:
<quoted text>
So your point is realtors want to sell your house for less (and get a lesser commission) and also don't sell it very fast (so they won't be paid any time soon). You think they are working everyday just to screw around with whoever might want to sell a house? Just a huge realtors practical joke? You are screwy.
For every 10000 dollars they suck you into dropping your price they only lose 500 to 600 commission of which the salesperson only loses 250 to 300 of his commission. You bet they'll try and make you drop thousands so that they can make the sale.
Hey Margo

Asheville, NC

#16 Mar 2, 2008
Margo wrote:
<quoted text>
So your point is realtors want to sell your house for less (and get a lesser commission) and also don't sell it very fast (so they won't be paid any time soon). You think they are working everyday just to screw around with whoever might want to sell a house? Just a huge realtors practical joke? You are screwy.
I think the point that was made here was that realators want to have an income. If it means selling your house for less to get a quicker buck for them, so be it.
Margo

Lincolnton, NC

#17 Mar 2, 2008
Jerry L wrote:
<quoted text>
For every 10000 dollars they suck you into dropping your price they only lose 500 to 600 commission of which the salesperson only loses 250 to 300 of his commission. You bet they'll try and make you drop thousands so that they can make the sale.
Get an appraisal done and find out what your house is worth. You can read can't you? And you know how to read numbers? People use realtors because they help them. You don't have to use a realtor. Stick a FSBO sign in your front yard and wait for a car to drive by next week. Maybe they will see your sign. Stick an ad on the internet. Some bankrupt doozey without the ability to even get a loan may call you. Put it in the local FSBO rag. Someone may see it when they are using your ad to light the fire in their fireplace. No one is stopping you.
ben spivey

United States

#18 Mar 2, 2008
i bet the property tax dont come down. watch them go up.
Margo

Lincolnton, NC

#19 Mar 2, 2008
Hey Margo wrote:
<quoted text>
I think the point that was made here was that realators want to have an income. If it means selling your house for less to get a quicker buck for them, so be it.
Are you people helpless? A realtor says sell if for $50,000 and you say, duh ok. Realtors can help you sell your house. That was my point. You act like realtors hold you at gun point and make you sell it for nothing.

“Dimensions Beyond Left & Right”

Since: Feb 07

Asheville

#21 Mar 2, 2008
Margo wrote:
<quoted text>
Get an appraisal done and find out what your house is worth. You can read can't you? And you know how to read numbers? People use realtors because they help them. You don't have to use a realtor. Stick a FSBO sign in your front yard and wait for a car to drive by next week. Maybe they will see your sign. Stick an ad on the internet. Some bankrupt doozey without the ability to even get a loan may call you. Put it in the local FSBO rag. Someone may see it when they are using your ad to light the fire in their fireplace. No one is stopping you.
Margo, you're right on target. An appraisal is the only way to get a true market value listing price for your house. Realtors don't establish market value. However, many sellers are too cheap to pay for an appraisal and then whine when the real estate agent sets the price so the house will sell. You **always** have the option of getting an appraisal in order to set your price and I highly reccommend it, especially in a market that is changing.

I completely respect people who choose to sell FSBO -- they've got way more time than I do to develop a marketing program, schedule showings, work with unqualified buyers and negotiate with unreasonable buyers than I do. I hire a mechanic to fix my car. I hire a plumber to install plumbing. I hire a dentist to handle dental issues. I hire a qualified Realtor to sell my properties. Its all in what you have the skills to do and what you enjoy doing. I don't enjoy doing any of these things and it makes far more sense to me to find a qualified professional and pay that professional to get the job done.
Garden Girl

Miami, FL

#22 Mar 2, 2008
lee wrote:
Just want to sell my place and get the hell out of N C. Taxes are crazy.
Could you or someone who shares your views, care to elaborate a bit more on this point? How exactly are taxes "crazy" in NC and Asheville? And in comparison to what and where else? Thanks. Seems everyone, everywhere has this same comment these days.

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