Jun 22 2011

Some houses are still way overpriced

We saw a house last night and I really liked it. It needed quite a bit of cosmetic work, but the rest of it was updated and that was great. The problem? It’s priced $30-40k higher than what our realtor thinks it’s actually worth, based on sold comparisons.

The current sellers bought in April 2009. The house today is definitely worth less than they paid, and that stinks a lot. I don’t know if they took part in the $8k first-time homebuyer money, but if they did, they will have to repay it since they lived in the house for less than three years (tell me if I’m wrong on that).

It seems that there are still a lot of overpriced houses on the market here. The ones that seem most overpriced are the ones that have been purchased since 2006.

Sellers are trying to break even on the sale and not have to bring cash to closing. Hard to blame them for wanting that. At the same time, I can’t overpay for a house and put my family in the same situation that they’re in.

Some houses around here are selling very quickly. Those are updated and are priced well.

I just feel really bad for people who HAVE to unload their house right now and are having to bring their checkbooks to closing or take out a loan to cover the difference between what they owe on the house and the realtor fees on top of that. But what can you do about it?

They say you should leave your emotions out of a real estate purchase. I’m trying. But I just really feel for people who are upside-down on their mortgages and have to sell.



3 Responses to “Some houses are still way overpriced”

  1. We are going through this process too and it has been so draining. We made our original offer a month ago and the bank came back with a counter of only $1000 off the listed priced. It was listed for too much based on comps in the area and needed the waterline put in and an entire new HVAC system. But we loved the house and it was still a great deal. We submitted another offer and then we were given two hours to submit our BEST offer. I offered OVER asking price. That’s how badly we wanted it. Needless to say it’s been 3 weeks now with no reply from the bank and all the online listings have either been removed or say “under contract”. We didn’t get it. :( (And still no official word from the bank!!)

    My advice, when you love a house, don’t lowball. You’ll waste your time. Banks are beyond difficult to deal with lately. I felt pressured to up my offer multiple times and I know things happen for a reason. So back to the house hunt we go…lots of luck with yours!

  2. Good luck on your search! My daughter has been looking for a few months and finally found one that an investor didn’t beat her to. Now the lender is trying to change everything even though she was preapproved before she even went house-hunting. It has been a very emotional time and no one is sure she will even get it afterall. She has spent a great deal on house inspection and appraisal fees already so if she doesn’t get it she is out allot of money anyway (at least she’ll get her deposit back). Buying a house is very hard now.

  3. Same thing in the UK. People asking prices have not really dropped, but sales are down. Because the Bank Of England are persisting with 0.5% interest rates – that can’t last forever. As soon as it goes up, more people will be forced to sell and prices I think will fall.
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Hey! I'm Kacie, wife to Shane and mother to Jonathan (7), Vivienne (5) and Amelia (2) . I write about my family's finance: how we save money, improve our spending, and plan for the future.

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