Comments on: Sellers in Cheaper Neighborhoods Accepting Fewer Lowball Offers http://seattlebubble.com/blog/2008/11/28/sellers-in-cheaper-neighborhoods-accepting-fewer-lowball-offers/ News & discussion about real estate & the housing bubble in the Seattle area. Sat, 21 Nov 2009 10:02:55 -0800 http://wordpress.org/?v=2.8.6 hourly 1 By: Garth http://seattlebubble.com/blog/2008/11/28/sellers-in-cheaper-neighborhoods-accepting-fewer-lowball-offers/#comment-61822 Garth Sun, 30 Nov 2008 17:33:25 +0000 http://seattlebubble.com/blog/?p=3509#comment-61822 Interesting, Tim now has access to broker level MLS data.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('61822','Garth',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('61822','Garth','Interesting, Tim now has access to broker level MLS data.',''); return false;">Quote</a></div> Interesting, Tim now has access to broker level MLS data.
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]]> By: stephen http://seattlebubble.com/blog/2008/11/28/sellers-in-cheaper-neighborhoods-accepting-fewer-lowball-offers/#comment-61820 stephen Sun, 30 Nov 2008 17:16:46 +0000 http://seattlebubble.com/blog/?p=3509#comment-61820 "golly" is what was substituded. "Shucks, I'll be more careful next time."<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('61820','stephen',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('61820','stephen','\"golly\" is what was substituded. \"Shucks, I\'ll be more careful next time.\"',''); return false;">Quote</a></div> “golly” is what was substituded. “Shucks, I’ll be more careful next time.”
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]]> By: stephen http://seattlebubble.com/blog/2008/11/28/sellers-in-cheaper-neighborhoods-accepting-fewer-lowball-offers/#comment-61819 stephen Sun, 30 Nov 2008 17:13:18 +0000 http://seattlebubble.com/blog/?p=3509#comment-61819 <i> "po folks tend to dick around less get right down to it so the asking is damn close to what the place is worth."</i> :-)<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('61819','stephen',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('61819','stephen','<i> \"po folks tend to dick around less get right down to it so the asking is damn close to what the place is worth.\"<\/i>\r\n\r\n :-)',''); return false;">Quote</a></div> “po folks tend to dick around less get right down to it so the asking is "golly" close to what the place is worth.”

:-)

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]]> By: David Losh http://seattlebubble.com/blog/2008/11/28/sellers-in-cheaper-neighborhoods-accepting-fewer-lowball-offers/#comment-61818 David Losh Sun, 30 Nov 2008 16:53:37 +0000 http://seattlebubble.com/blog/?p=3509#comment-61818 There are many factors about lower priced properties in terms of location and condition. There's a reason why cheap properties are cheap. Real Estate is the land plus amenities. View, proximity to shopping or job centers, the size of the lot, what you can build on the lot are some of the factors a property can have. Real Estate is the land value and the value of the land can mean different things to different people. That's why some schools such as Bryant/Assumption or Saint Joe's on Capital Hill have a higher imact on home prices. Some people have to live near Green Lake. One of the main factors about cheap houses is that you can get them paid off to own free and clear. In that way the demand for cheap is greater. There's a term in Real Estate of scotch tape and paper clip properties. They are cheap and differently configured from what people normally want. They are held together with scotch tape and paper clips. You can buy them cheap, rent them, pay them off and you own a land based porfolio when you're done. Yes the terms can be slum lords, but most people with this strategy end up being very good land lords. They become wealthy rather quickly. These are the people who appreciate good tenants because of the hassle free income once the property is in good shape and "on line."<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('61818','David Losh',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('61818','David Losh','There are many factors about lower priced properties in terms of location and condition. There\'s a reason why cheap properties are cheap. \r\n\r\nReal Estate is the land plus amenities. View, proximity to shopping or job centers, the size of the lot, what you can build on the lot are some of the factors a property can have. Real Estate is the land value and the value of the land can mean different things to different people. That\'s why some schools such as Bryant\/Assumption or Saint Joe\'s on Capital Hill have a higher imact on home prices. Some people have to live near Green Lake. \r\n\r\nOne of the main factors about cheap houses is that you can get them paid off to own free and clear. In that way the demand for cheap is greater. \r\n\r\nThere\'s a term in Real Estate of scotch tape and paper clip properties. They are cheap and differently configured from what people normally want. They are held together with scotch tape and paper clips. You can buy them cheap, rent them, pay them off and you own a land based porfolio when you\'re done. \r\n\r\nYes the terms can be slum lords, but most people with this strategy end up being very good land lords. They become wealthy rather quickly. These are the people who appreciate good tenants because of the hassle free income once the property is in good shape and \"on line.\"',''); return false;">Quote</a></div> There are many factors about lower priced properties in terms of location and condition. There’s a reason why cheap properties are cheap.

Real Estate is the land plus amenities. View, proximity to shopping or job centers, the size of the lot, what you can build on the lot are some of the factors a property can have. Real Estate is the land value and the value of the land can mean different things to different people. That’s why some schools such as Bryant/Assumption or Saint Joe’s on Capital Hill have a higher imact on home prices. Some people have to live near Green Lake.

One of the main factors about cheap houses is that you can get them paid off to own free and clear. In that way the demand for cheap is greater.

There’s a term in Real Estate of scotch tape and paper clip properties. They are cheap and differently configured from what people normally want. They are held together with scotch tape and paper clips. You can buy them cheap, rent them, pay them off and you own a land based porfolio when you’re done.

Yes the terms can be slum lords, but most people with this strategy end up being very good land lords. They become wealthy rather quickly. These are the people who appreciate good tenants because of the hassle free income once the property is in good shape and “on line.”

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]]> By: biliruben http://seattlebubble.com/blog/2008/11/28/sellers-in-cheaper-neighborhoods-accepting-fewer-lowball-offers/#comment-61793 biliruben Sat, 29 Nov 2008 05:30:14 +0000 http://seattlebubble.com/blog/?p=3509#comment-61793 Investors can probably cash-flow cheaper properties more easily, putting a bottom on the bottom-end, so to speak.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('61793','biliruben',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('61793','biliruben','Investors can probably cash-flow cheaper properties more easily, putting a bottom on the bottom-end, so to speak.',''); return false;">Quote</a></div> Investors can probably cash-flow cheaper properties more easily, putting a bottom on the bottom-end, so to speak.
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]]> By: Sniglet http://seattlebubble.com/blog/2008/11/28/sellers-in-cheaper-neighborhoods-accepting-fewer-lowball-offers/#comment-61791 Sniglet Sat, 29 Nov 2008 00:53:01 +0000 http://seattlebubble.com/blog/?p=3509#comment-61791 Is it the average price of the neighbourhood, or the price of the house itself that really matters here? Are sellers of million dollar homes in poor neighbourhoods just as reluctant to lower their prices as all the other nearby sellers of lower-priced properties?<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('61791','Sniglet',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('61791','Sniglet','Is it the average price of the neighbourhood, or the price of the house itself that really matters here? Are sellers of million dollar homes in poor neighbourhoods just as reluctant to lower their prices as all the other nearby sellers of lower-priced properties?',''); return false;">Quote</a></div> Is it the average price of the neighbourhood, or the price of the house itself that really matters here? Are sellers of million dollar homes in poor neighbourhoods just as reluctant to lower their prices as all the other nearby sellers of lower-priced properties?
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]]> By: jon http://seattlebubble.com/blog/2008/11/28/sellers-in-cheaper-neighborhoods-accepting-fewer-lowball-offers/#comment-61788 jon Fri, 28 Nov 2008 23:28:27 +0000 http://seattlebubble.com/blog/?p=3509#comment-61788 For lower priced areas, the fraction of value that is in the land is smaller. The value of the house itself can be compared to replacement cost and depreciation. The land value is harder to get a handle on, so sellers will likely start out high and work their way down until they find a buyer. That reverse auction process takes time, so houses will be on the market for a long time as they wait for a buyer at each price step down.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('61788','jon',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('61788','jon','For lower priced areas, the fraction of value that is in the land is smaller. The value of the house itself can be compared to replacement cost and depreciation. The land value is harder to get a handle on, so sellers will likely start out high and work their way down until they find a buyer. That reverse auction process takes time, so houses will be on the market for a long time as they wait for a buyer at each price step down.',''); return false;">Quote</a></div> For lower priced areas, the fraction of value that is in the land is smaller. The value of the house itself can be compared to replacement cost and depreciation. The land value is harder to get a handle on, so sellers will likely start out high and work their way down until they find a buyer. That reverse auction process takes time, so houses will be on the market for a long time as they wait for a buyer at each price step down.
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]]> By: Matt http://seattlebubble.com/blog/2008/11/28/sellers-in-cheaper-neighborhoods-accepting-fewer-lowball-offers/#comment-61787 Matt Fri, 28 Nov 2008 22:20:06 +0000 http://seattlebubble.com/blog/?p=3509#comment-61787 for the mathematically inclined, an R-squared of .48 is a weak correlation. but I agree, there appears to be something there. it might be more interesting grouped by neighborhood plotted against average price, or just plotted against neighborhood.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('61787','Matt',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('61787','Matt','for the mathematically inclined, an R-squared of .48 is a weak correlation. \r\n\r\nbut I agree, there appears to be something there. it might be more interesting grouped by neighborhood plotted against average price, or just plotted against neighborhood.',''); return false;">Quote</a></div> for the mathematically inclined, an R-squared of .48 is a weak correlation.

but I agree, there appears to be something there. it might be more interesting grouped by neighborhood plotted against average price, or just plotted against neighborhood.

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]]> By: patient http://seattlebubble.com/blog/2008/11/28/sellers-in-cheaper-neighborhoods-accepting-fewer-lowball-offers/#comment-61773 patient Fri, 28 Nov 2008 16:50:39 +0000 http://seattlebubble.com/blog/?p=3509#comment-61773 The pricier the area the bigger the denial when setting the listing price. We're special you know.<div class="comment-remix-meta"><a href="#" class="replyto" onclick="replyto('61773','patient',''); return false;">Reply</a> - <a href="#" class="quote" onclick="quote('61773','patient','The pricier the area the bigger the denial when setting the listing price. We\'re special you know.',''); return false;">Quote</a></div> The pricier the area the bigger the denial when setting the listing price. We’re special you know.
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