Good Ways Not To Sell a House

Even in this market, with multiple offers and sales prices often well beyond list price there are still ways not to sell a house.  Not every Redondo 2 on a lot townhomesaspect is under our control as realtors, or the sellers, but at some level what’s the point in even listing a home in which there are so many obstacles that it isn’t going to sell anyway.

I recently came across a listing in an area that I sell frequently and was surprised at just how many ways they’re trying to deter me from selling it.

Let’s start with the big one…price.  This is clearly a rising market so I understand pricing slightly higher than the last similar sale….but those were turnkey and highly upgraded.  Trying to set a price record on something that doesn’t warrant it is bad enough on it’s own…but that’s just the first challenge….

Oh wait….it’s subject to inspection.  So now I can’t get my clients in to take a look

What….there’s more?  Oh it’s tenant occupied and we can’t move in for almost 12 months?

So to recap my clients should by a home that’s overpriced that they can’t see, and then can’t move into until next year…..

….maybe we should wait for the next one….

Oh this crazy market……how home prices are getting out of control

Chart-UpwardI often tell my statistically driven friends and clients that although “trendlines” and statistical data can help explain what is happening and what may happen in real estate, it often overlooks a very key piece of the puzzle. Unlike other products people buy and sell, home sales are often driven by both emotion and perception. It was only a few months back when the perception was that prices would continue to be flat, or even go down slightly, and the biggest challenge I faced was convincing buyers that now was a good time to buy.

Oh how things have changed in such a short time. Very quickly the market shifted to favor sellers and as soon as buyers decided that they may miss their opportunity, things have quickly gotten out of control. Low inventory, low interest rates, short sale and REO “deals” drying up, and pressure from large investors buying and flipping everything they could find has made it almost impossible to buy a home. How quickly we forget all that created the bubble in the first place and buyers are now chasing homes, overbidding, paying too much, waiving the appraisal and just about everything else that once again appears unsustainable.

In my own personal experience the last 4 offers I have put in for homes in Manhattan Beach and Redondo Beach have required that my buyers waive their appraisal contingency….the sellers knowing full well that the home wouldn’t appraise. No doubt this is great for sellers, but again it appears unsustainable and will likely cause problems in the near future.   We’ll likely continue to see this incredible turnaround until inventory and interest rates move away from near record lows.  I’m looking forward to the days of a balanced market, in which well priced homes sell quickly and buyers have a chance of paying market value.   In the mean time, if I were a  South Bay home seller who had given some thought to list my home…..it doesn’t get much better than this.

Wondering Why You Can’t Find that Dream Home in the South Bay?

It’s no secret that it’s a frustrating world out there for home buyers.  Oh how quickly things turned from a strong buyers market to a market clearly favoring sellers.  According to Redondo Beach Realtor Keith Kyle “There is incredibly low inventory everywhere and the high demand areas of the South Bay such as Manhattan Beach, Hermosa Beach and Redondo Beach have little to offer buyers at the moment”.  To make life even more frustrating for Beach Cities home buyers, is that the moment a well priced home comes on the market, the frenzy starts with buyers often going way over asking price, waiving the appraisal contingency and simply buying homes above current market value.  The chart below sums it up pretty clearly with the number of active homes for sale in the South Bay plummeting from over 1500 a year ago to just over 600 in December of 2012.  This is while the number of closed sales has remained steady.

To view the current homes for sale visit our South Bay MLS search, or click our recent home sale page to see the most recent home sales in the South Bay cities of Manhattan, Hermosa, Redondo Beach, Torrance, El Segundo and surrounding areas.

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Vista Sotheby’s International Realty is one of the top real estate brokerages in the South Bay and Southern California with offices in Redondo Beach and throughout the South Bay

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