Nearly a Third of Sellers Will Overprice On Purpose

Full disclosure: The Tim is employed by Redfin.

On Monday I posted the results of a new quarterly survey of home sellers that we’re doing at Redfin. This part in particular stood out to me as I was analyzing the responses:

…when asked how they approach pricing their home 32% of sellers indicated that they would intentionally price their home above local comparable sales, either to build a buffer for negotiation, or because they are willing to wait until the market values their home as highly as they do:

How Will You Price Your Home?

And that only counts the sellers who know they’re overpricing. No doubt some non-trivial portion of the group that claims they are pricing their home at the middle of the range of comparable sales are delusional about which homes are actually comparable to theirs.

Given stigma that is typically associated with a long time on market and price drops, I have to wonder why nearly a third of sellers would intentionally overprice their homes. If you know that the market value of your home isn’t as high as where you would like or need it to be in order to sell, why even bother listing your home?

Perhaps there are some readers here who are selling or will sell soon that can shed some light onto this mentality.

  

About The Tim

Tim Ellis is the founder of Seattle Bubble. His background in engineering and computer / internet technology, a fondness of data-based analysis of problems, and an addiction to spreadsheets all influence his perspective on the Seattle-area real estate market.

49 comments:

  1. 1
    toad37 says:

    Great topic. Would love some insight into this phenomenon.

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  2. 2
    Jiji says:

    Simple, they don’t need to sell and are in no hurry but they want to test the market,
    you never know.

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  3. 3

    Nice houses in desirable parts of the Seattle area are selling fast. Sellers are asking for more than market value, and in some of these “magic” areas, some of these are selling for more than market value. The problem is that some sellers think they have gold when they have (bleep). I’m not sure of the long term ramifications. Sellers are testing the price limits, and assume that because inventory is low, somebody is going to want their POS house.
    And, if your POS house is in downtown Bellevue, or the top of Queen Anne, or Wallingford, Kirkland, Sammamish, etc, you might just get away right now with selling it for more than what appears to be current market value. But then some doofus in Kingsgate, thinking that because he has a Kirkland address he can sell anything for any price, despite being surrounded by crappy apartment buildings, is going to try to overprice his house, and that will stay on the market. Rght now some of the more expensive neighborhoods are doing very well because folks who make 250k per year have suffered less than the folks who make 60k.

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  4. 4
    Dan O says:

    One explanation is that the listing agent understands how the Anchoring Effect can influence a potential buyer’s perception of the property.
    http://en.wikipedia.org/wiki/Anchoring_effect

    They may also believe that stigma of multiple price reductions and time-on-market can be mitigated by periodically providing a new MLS listing, despite the fact that one can easily track prior listings with Redfin or Zillow.

    As a potential buyer I tend to view the sellers of overpriced homes as employing a form of Dutch Auction.
    http://en.wikipedia.org/wiki/Dutch_auction

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  5. 5
    DMac says:

    Sometimes Occam’s Razor really does make sense in some situations, and in this case it’s a bad realtor being unable (or just ignorant and/or greedy), to convince their buyer (who may also be ignorant and/or greedy) to price their properties appropriately to their local market area. One thing that may mitigate this factor – we heard some talk when we put our condo on the market that the prior stigma of having a property sit for more than 60 days w/o a price reduction no longer made it retroactively radioactive. I didn’t believe it then, but this is a different market than the one we sold in.

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  6. 6
    DMac says:

    RE: DMac @ 5 – Sorry, for reference I forgot to add that we put our place up for sale in Chicago back in September of last year

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  7. 7
    Howard says:

    By Ira Sacharoff @ 3:

    . But then some doofus in Kingsgate, thinking that because he has a Kirkland address he can sell anything for any price, despite being surrounded by crappy apartment buildings, is going to try to overprice his house, and that will stay on the market. .

    I just had this conversation with someone.. I called somewhere in Juanita, Kirkland…. I know the difference… But it gave a different impression of what I was looking for.

    Does the annexation change values or perception?

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  8. 8
    Lo Ball Jones says:

    RE: Jiji @ 2

    Exactly. I could price the android phone sitting on my desk for 5 billion dollars on Craigslist and leave the listing there until I die.

    In fact, maybe that’s what people are doing — setting some high price hoping to in effect, get a willing buyer and “win the lottery”. Why not?

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  9. 9
    Matt the Engineer says:

    I think @2 has most of the reason.

    But here’s another. If you believe the market is rising, especially quickly rising, overpricing might be a good idea. Comps are a lagging indicator. They’re telling you where the market was a few weeks or months ago. If you think the market has increased since then, it’s not a terrible idea to bump up the price a bit.

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  10. 10
    whatsmyname says:

    And equally amazingly, there are people out there who will make an offer at less than market value either to give themselves negotiating room, or because they think they will eventually find a seller who will sell at the price. Perhaps there are some readers here who are buying or will buy soon that can shed some light onto this mentality?

    Wait; that’s not amazing, that’s everyday life.

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  11. 11

    RE: Howard @ 7
    I don’t think the annexations of Juanita, etc will have much effect on real estate values. These neighborhoods already had Kirkland addresses.
    It’s funny, I live near an area that will vote on annexing to Renton in November, and both sides claim that the annexation will have an effect on real estate values. it’s just that the two sides disagree on how. The proponents say that annexing to Renton will increase property values, and opponents claim that annexation will hurt values. And I say that if it’s a crappy neighborhood, buyers are not going to care which government agency services it, and if it’s a good neighborhood, nobody’s going to care who sends you the water and garbage bill and fixes the potholes, as long as it gets done.

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  12. 12
    just a guess says:

    One of the factors to pricing a home above comps could well be the decline in market price of the homes in recent years. I would guess a good number of people own homes where they owe more on the house than what the comps say they could sell it for. It could be that some people are pricing the home at a price where they will not have to come out of pocket to sell the home to someone else.

    Some of those people may not be able to sell the home for tens of thousands less than they owe on it so their only choice would be to sell at a price that is higher than the area comps or to not sell the home or to let the bank have it.

    It could also well be that a portion of those homes that are listed over the comps end up being bank owned homes as I keep running into people who are losing their homes to the banks.

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  13. 13
    Passed Doo says:

    Who wouldn’t want a prestigious Renton address ?

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  14. 14

    By Passed Doo @ 12:

    Who wouldn’t want a prestigious Renton address ?

    The opponents to the annexation claim that their home values will decline because they will be giving up their Seattle address. They do not live in Seattle. They live in Skyway, which is in between the two. And even with a Seattle address, nobody mistakes Skyway for Queen Anne.

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  15. 15
    Howard says:

    I could care less about Juanita vs Kirkland, but I think Kirkland will increase in desirability in the near term. The waterfront park is moving forward, buildings are being constructed and the core East/West of Market, Houghton, and Norkirk etc areas have virtually no family houses for less than $500k.

    Is it due to government no.. But I do see some winners/losers in the Kirkland’s tighter zoning.

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  16. 16
    Howard says:

    By Howard @ 15:

    I could care less about Juanita vs Kirkland, but I think Kirkland will increase in desirability in the near term. The waterfront park is moving forward, buildings are being constructed and the core East/West of Market, Houghton, and Norkirk etc areas have virtually no family houses for less than $500k.

    Is it due to government no.. But I do see some winners/losers in the Kirkland’s tighter zoning.

    I meant Juanita will increase…

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  17. 17
    ARDELL says:

    RE: Howard @ 7

    For some people and not others…it’s a dangerous play. If you pay top dollar just because it was annexed…don’t be betting someone else is going to do that when it’s your turn to sell. Anyone with a long term perspective and memory will always value it as “kind of” Kirkland…but not really.

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  18. 18

    RE: Howard @ 16
    I agree. I think Juanita will increase in value also, but not because of annexation.

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  19. 19
    David Losh says:

    I think this is an excellent survey that is both informative, and much more predictive than sales data.

    I’d like to see more survey about the mind set of both buyers, and sellers.

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  20. 20
    corndogs says:

    RE: Ira Sacharoff @ 11

    I picked a random house for sale in Skyway and found 36 kitten kickers with in a mile radius and 83 within a 2 mile radius….
    http://www.icrimewatch.net/results.php?AgencyID=54473&whichaddr=home_addr%7Ctemp_addr&SubmitAddrSearch=1&AddrStreet=12059+70th+Ave+S&AddrCity=seattle&AddrState=48&AddrZip=98178&AddrZipPlus=&excludeIncarcerated=&radius=1

    Skyway is a sh$thole. Annexation is irrelevant.

    BTW, your coveted Queen Anne area has 15 registered se x offenders per 1 mile radius. Not exactly an awesome place for children to play either. http://www.icrimewatch.net/results.php?AgencyID=54473&whichaddr=home_addr%7Ctemp_addr&SubmitAddrSearch=1&AddrStreet=415+W+Crockett+St&AddrCity=seattle&AddrState=48&AddrZip=98033&AddrZipPlus=98119&excludeIncarcerated=&radius=1

    but worse yet is the neighborhood ‘The Tim’ lives in and where he’s committed to pay out his 30 year mortgage.. a whopping 58 kitten kickers within a mile radius of his home….. genius indeed.
    http://www.icrimewatch.net/results.php?AgencyID=54487&whichaddr=home_addr%7Ctemp_addr&SubmitAddrSearch=1&AddrStreet=3609+wetmore&AddrCity=everett&AddrState=48&AddrZip=98201&AddrZipPlus=&excludeIncarcerated=&radius=1

    BTW….. In Gig Harbor you’ll find zero kitten kickers within a mile radius of your house…
    http://www.icrimewatch.net/results.php?AgencyID=54483&whichaddr=home_addr%7Ctemp_addr&SubmitAddrSearch=1&AddrStreet=8223+goodman&AddrCity=gig+harbor&AddrState=48&AddrZip=98332&AddrZipPlus=&excludeIncarcerated=&radius=1

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  21. 21
    One Eyed Man says:

    RE: corndogs @ 20

    So try some searches by city:

    Medina = 0 (median home price about 1 mill and population about 3K)
    Mercer Island = 1 (median home price about 890K and population about 22K)
    Gig Harbor = 11 (median home price about 427K and population about 7K)

    Looks to me like there’s an inverse correlation between median home price and registration level per capita. You can still buy exclusivity in America but you have to pay more than it costs to live in Everett or Skyway (big surprise).

    As a teenage member of the little known subversive group referred to as the Mercer Island Liberation Front in the late 1960’s, I pressed a few hams on the back seat windows of cars to offend the rich elite. That might be an offense requiring registration today. The only lesson here is that rich people don’t get caught (or at least don’t get convicted) with their pants down, so let’s move along, these are not the droids we’re looking for.

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  22. 22
    wreckingbull says:

    Please, not the kitten kicker obsession again. I think we have been through that one a few too many times already.

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  23. 23

    By Ira Sacharoff @ 14:

    By Passed Doo @ 12:
    Who wouldn’t want a prestigious Renton address ?

    The opponents to the annexation claim that their home values will decline because they will be giving up their Seattle address. They do not live in Seattle. They live in Skyway, which is in between the two. And even with a Seattle address, nobody mistakes Skyway for Queen Anne.

    I lived in the Seattle part of Skyway, and was just telling my neighbor yesterday how glad I was not to live in Seattle any more. Those people are crazy there. They vote for high taxes for obviously stupid things like the Monorail! And their City Council has no respect at all for state law, and will openly and knowingly violate it.

    Where I am now it’s unincorporated King County with a Renton address. In the past 7 years or so there have been two unsuccessful efforts to incorporate as the new city of Fairwood. That means we’ll probably become part of Renton some day, unless Kent is nice enough to save us from that fate. We are in the Kent school district, so there’s a tiny tiny chance of that happening.

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  24. 24
  25. 25

    By One Eyed Man @ 21:

    The only lesson here is that rich people don’t get caught (or at least don’t get convicted) with their pants down, so let’s move along, these are not the droids we’re looking for.

    That was my thought also. If caught, they’re more likely to be able to get their way out of trouble with attorneys and other pressure. In addition, with their wealth they could also be on the paying side of an act of prostitution, which doesn’t make you a registered SO if caught.

    A few other points would be not everyone has to worry about SOs and SOs have legs, so they don’t always strike in the neighborhood they live in. I don’t think I’ve ever met a buyer who mentioned being worried about SOs, or a seller who wanted to sell because of them.

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  26. 26
    corndogs says:

    RE: One Eyed Man @ 21 – Your analysis is flawed for a couple reasons.

    Medina and Mercer Island are small citys that are bounded by other cities… Gig Harbor is bounded by county and Gig Harbor Addresses are all the way out into the key peninsula. Your Median house price for Gig Harbor is a very specific geographical region. I’m not concerned with kitten kickers out on the Key Peninsula, that’s not my neighborhood.

    No, it’s much better to pick your house that you choose to buy and choose it away from convicted kitten kickers. Maybe some rich people got off for putting their butt cheeks against a window but multiple convictions for 1st degree rape is not a bad rap….. it’s a bad guy….. don’t be a Democrat and try to slough it off. It’s a serious concern…

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  27. 27
    corndogs says:

    RE: corndogs @ 22 – You also hand picked your data…. you didn’t pick any neighborhoods in Seattle proper because you know the prices are very high and there is no place to buy without having a convicted kitten kicker within several blocks…. in any neighborhood.

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  28. 28

    RE: corndogs @ 20
    The question was whether the annexation of Juanita had any influence on home values.
    The discussion was not about kitten kickers, though you do seem to be obsessed with it.
    I never said I “coveted” Queen Anne. I’m merely reporting that people like it for some reason and houses sell well there. But I guess now that we know that Queen Anne has registered kitten kickers, prices there are going to plummet because the great and wise Corndog has revealed the truth onto the world. I live near Skyway, and used to be on the neighborhood council that included Skyway. Every month someone from the sheriff’s office would come in and we would discuss the previous month’s crime stats. Skyway may have kitten kickers, but very rarely were violent love crimes committed there. Maybe the kitten kickers went to a different neighborhood to committ their crimes, who knows? In any event, while the number of kitten kickers living in a particular neighborhood may have some bearing on home sales, it doesn’t seem to be a hard and fast rule. Houses sell for an awful lot on Queen Anne and Capitol Hill, and have for a long time. This is urban living, and people buy houses in those places. Gig Harbor does not have kitten kickers. That does not make it a nice place to live. Some people find it boring. It’s perfectly fine if you like living there. Lots of people do. But this air of superiority, that you know better than anyone else, is just slightly off putting. Only idiots will buy a house on Queen Anne because they have kitten kickers there, and only geniuses like yourself will buy houses in Gig Harbor, because you, unlike the rest of the unwashed masses posting on Seattle Bubble, have it all figured out.

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  29. 29
    David Losh says:

    RE: toad37 @ 1

    I agree this was a great topic, but that part is over now, let’s talk about violent love instead.

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  30. 30
    George says:

    I’ve lived in Juanita for several years and am not affected by the annexation. My part of Juanita has always been considered Kirkland. I think home values here are more affected by which elementary school you are zoned for and proximity to beaches, parks, shopping and restaurants. People move here because they would like to walk to those places or drive very short distances.

    If anything will raise the price in Juanita it’s the newly renovated Juanita Beach Park and new retail. I am always surprised by how affordable this neighborhood is compared to east of market kirkland.

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  31. 31
    ARDELL says:

    RE: corndogs @ 27

    Interesting topic. Not having “a kitten kicker” is not a reasonable expectation anywhere. Even if “a kitten kicker” doesn’t live there when you buy…they can move in at any time.

    So the question becomes “how many kitten kickers = too many?”

    If you want to live in a City…you can’t usually use 1 to 5 as an expectation almost anywhere that is walkable to anything. I put in 5 addresses in great areas like Green Lake very close to the Lake (but not too close as there are no registered kitten kickers in the lake), Queen Anne, Capital Hill, Wallingford and Bryant. These are just my examples. There are many others.

    Usually when I do that the number comes in at 10 to 15 kitten kickers. Then I set the expectation as being realistic for an In City good neighborhood at no more than 17 within a mile of the house.

    On The Eastside ZERO is a viable expectation in “the burbs” in a low walkscore location, but 1 or 2 shouldn’t freak anyone out, as you get the address of where they live and a photo. In an Eastside high walk score location, 1 to 6 is not bad.

    It’s easier to memorize the locations and faces of 3 than 35, for sure. Remember these are within ONE MILE of your house. So more than 17 is likely a deal breaker for a lot of people. Not for everyone. But for a lot of people.

    My $.02 There is no right or wrong answer on this.

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  32. 32
    ARDELL says:

    OMG…really? We can’t say “kitten kicker” on a real estate blog? I never realized that. The term kitten kicker is in every real estate contract since Megan’s Law. How could it be not allowed on a real estate blog?

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  33. 33
    corndogs says:

    RE: Ira Sacharoff @ 28 – “Only idiots will buy a house on Queen Anne because they have kitten kickers there, and only geniuses like yourself will buy houses in Gig Harbor, because you, unlike the rest of the unwashed masses posting on Seattle Bubble, have it all figured out”.

    Ira if you aren’t washing yourself, that’s TMI for me, but I can kinda get that from your pic…… why is it that so many of you guys speak as if you’re the spokesman for all posters on Seattle Bubble… you’re just a guy on here blabbing away, you aren’t part of some greater whole…..

    My point is Skyway is an armpit… period… so it doesn’t matter if it’s annexed, it still needs to be scrubbed down and deodorized. A person isn’t speaking with an air of superiority when he tells you that… it’s obvious to all people…. Now, I posted some data, didn’t really say much else. It was kind of surprising to me to find that Everett had so many kitten kickers, and it was equally surprising to find that ‘The Tim’ is living smack dab in the middle of an arm-pit even worse than Skyway. There’s literally a kitten kicker on every block. I just wonder if he knew that before he bought? Doesn’t seem like a place to ride out a 30 year mortgage… that’s all

    Now you guys have been on here for 5 years or so bashing on people who had the bad fortune to be stupid enough to buy at the wrong time…. I’ve tuned in and listened here and there…. now you should expect to get a little crap tossed your way occasionally…. so quit being a whinny Democrat. If you want to retort… try being at least creative or mildly amusing…. nobody likes a cry baby….

    For the record… I don’t give a riptity do about Gig Harbor, except for the fact that it’s not Skyway. Skyway is the butt-hole of the larger ass, that is Seattle. You might think it’s fun to be in the middle of that. But there’s a difference between urban living and ghetto living…
    So don’t try to pawn Skyway off as some exciting urban nightlife life choice you’ve made.

    This is Skyway in the news
    http://www.seattlepi.com/local/article/Sheriff-s-policing-plan-cuts-cops-in-Skyway-3717813.php

    This is Gig Harbor in the news
    http://www.smithsonianmag.com/travel/The-20-Best-Small-Towns-in-America.html?c=y&page=6&navigation=next#IMAGES

    IRA, if there are unwashed masses in Seattle ( I didn’t say that, you did)….. they are in Skyway..

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  34. 34
    whatsmyname says:

    By David Losh @ 29:

    I agree this was a great topic, but that part is over now, let’s talk about violent love instead.

    David,
    This may be your finest comment, ever. That thumbs up is from me.

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  35. 35
    Carla E says:

    We have had our house in Lake Forest Park for sale for almost 1 year. We just lowered our price, by $29,000. Yes we had it overpriced, and we did get a lot of people coming through. We even had some offers….albeit weird flaky offers. We aren’t in a hurry and we are not underwater. This house shows really well, and the only thing that is doesn’t have is a garage. Heck, it didn’t have a garage when we bought it 10 years ago, but there’s plenty of room to build one.
    We priced our house based on neighborhood CMA’s…..we have since lowered our price based on CMA’s from a different agent….why would they be so vastly different? I have no idea.

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  36. 36
    David Losh says:

    RE: Carla E @ 35

    Lake Forest Park is a big place with a lot of hills, and valleys. On top of that a lot has to do with the view, and a lot has to do with your construction.

    Your house looks to be a 1950s, or 1960s style which is desirable to some one like me, but may seem dated to a younger couple.

    The biggest thing is that you were over $500K. Most people search by price, and $500K is a cut off point for a lot of buyers.

    Most Real Estate agents are idiots. Any one can get a Real Estate license, and especially now there are desperate agents who feel having a listing is a sure way of making a commission. They “buy” the listing at a higher price, you sign up, then there is the price reduction discussion.

    Other agents are busy, the good agents are busy right now, and they will price your home to get it sold. You have a much better chance of selling below $500K than above it.

    What was your first agent’s reasoning for being just a bit over $500K? Did you price it, or did he, or she?

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  37. 37
    corndogs says:

    RE: Kary L. Krismer @ 25 – Jesus Krismer, first Losh starts kicking your butt and you blow a gasket and I have to jump into try to save you and now you’re talking Democratic ‘head in the sand’ BS. So in your estimation Medini has zero kitten kickers because they ‘bought their way out or used other pressures’ whatever that means….or they some how had access to prostitution that skyway people didn’t have? what a joke….. So everyones basically the same in your eyes… If you don’t have money you molest a child or if you have a few bucks get a prostitute….. That is just plain dumb ass buddy and makes a statement even about where you see yourself in the whole mix… People are different and birds of a feather flock together…I think you’re having a bad week….. maybe get some sleep and try again tomorrow…. Everybody, I know is aware of kitten kickers and considers that when buying….. Since you’re a Renton guy, I guess by default your customers aren’t too concerned with it… otherwise they wouldn’t be looking in your area.

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  38. 38

    RE: corndogs @ 33
    Just a couple of things to set the record straight:
    1. I don’t live in Skyway and never said I did. I live about a mile away, on my quiet half acre, humbly growing organic vegetables and minding my own business. I know and like all of my neighbors, and they include right wing Christian conservatives.
    2. You’re finding news articles to cite, but you don’t cite the follow up news articles. The sheriff’s office proposed cutting police services in Skyway, but a concerted effort of citizens prevented that, and the funding was restored. It became a political issue, and may be part of the undoing of the current King County Sheriff, who is likely to get defeated in November.
    3. There is no nightlife in Skyway. There’s a decent tavern with good burgers. Skyway has poor people. I guess that makes it an armpit, but what are you going to do? Bring the tanks in and annihilate the poor? Nah. Somebody’s got to scrub the toilets in Gig Harbor.
    “Skyway” consists of only a few blocks, but a lot of the surrounding area is mistakenly called Skyway. Some of that area consists of very expensive homes overlooking Lake Washington, with very few crimes or kitten kickers. I’m not saying that Skyway is a wonderful place, or that anyone should move there. What I am saying is that it’s not a terribly unsafe place, and that a lot of the people who live near there are pretty happy.

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  39. 39
    wreckingbull says:

    Hey corndogs, didn’t some methed-out lady shoot up a mini mart next door to the Truman Show studio a few weeks back? I don’t know. Living next door to the KP, I’m not so sure I would be casting aspersions.

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  40. 40

    RE: ARDELL @ 31
    Sometimes I forget how funny you are, Ardell. You said ” There are no registered kitten kickers in the lake.”
    Maybe there are. But they haven’t been offending for a very, very long time. It’s hard to float wearing those concrete overshoes.

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  41. 41

    RE: David Losh @ 36
    David Losh said ” Most real estate agents are idiots.”
    Ummmmmmm….wha?

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  42. 42
    corndogs says:

    RE: Ira Sacharoff @ 38RE: wreckingbull @ 39 – Wreckedbung, citing a single act of violence not anywhere near my neighborhood is kind of a stretch ain’t it? Pretty lame…..but thanks for playing. Actually, Wreckedbung, if you lived in Long Branch on the KP you’d have zero kitten kickers within 2 miles…. that’s better than Medina or Mercer Island and maybe if you had grew up on the KP your bung wouldn’t have gotten wrecked in the first place…. something to think about.

    Long Branch Key Peninsula
    http://www.icrimewatch.net/results.php?AgencyID=54483&whichaddr=home_addr|temp_addr&SubmitAddrSearch=1&AddrStreet=3917+key+peninsula+hwy&AddrCity=longbranch&AddrState=48&AddrZip=98351&AddrZipPlus=&excludeIncarcerated=

    There are poor people in Long Branch too…. but it’s a different demographic….. there are descent poor people who are normal folks and there are people who live along the buttcrack of the state called Martin Luther King Way…. That’s why there are bars on the windows all along MLK way… and out on the KP there isn’t….

    Do I want to bring in the tanks and annihilate? No…. I just wouldn’t buy a house in Skyway or Downtown Everett…. Just like I wouldn’t buy a house in the Hilltop area of Tacoma. Hilltop also coincidentally has MLK Way as it’s main thoroughfare and 93 kitten kickers within 1 mile radius..

    Hilltop Tacoma
    http://www.icrimewatch.net/results.php?AgencyID=54483&whichaddr=home_addr%7Ctemp_addr&SubmitAddrSearch=1&AddrStreet=1736+s+m&AddrCity=tacoma&AddrState=48&AddrZip=98405&AddrZipPlus=&excludeIncarcerated=&radius=1

    Interestingly though for the people who’ve said they like parts of Tacoma…..the North and West End of Tacoma fair better than the Seattle Neighborhoods.

    North End Tacoma
    http://www.icrimewatch.net/results.php?AgencyID=54483&whichaddr=home_addr%7Ctemp_addr&SubmitAddrSearch=1&AddrStreet=5018+n+29th&AddrCity=tacoma&AddrState=48&AddrZip=98407&AddrZipPlus=&excludeIncarcerated=&radius=1

    West End of Tacoma
    http://www.icrimewatch.net/results.php?AgencyID=54483&whichaddr=home_addr|temp_addr&SubmitAddrSearch=1&AddrStreet=1031+s+oxford&AddrCity=tacoma&AddrState=48&AddrZip=98465&AddrZipPlus=&excludeIncarcerated=

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  43. 43

    By Carla E @ 35:

    We priced our house based on neighborhood CMA’s…..we have since lowered our price based on CMA’s from a different agent….why would they be so vastly different? I have no idea.

    Different agents give different results, and unfortunately for owners they often judge the quality of the agent by how high the number is in the CMA.

    One of my early blog pieces explained how agents were mis-pricing a type of house in a neighborhood north of Lake Washington. This was just after the peak, when things were still selling, but no1.5 bath homes in that neighborhood had sold over $400,000. Despite that. over half the active listings of 1.5 bath homes had started at over $400,000. One of my theories was that agents started pricing off of other active listings rather than sold listings. But after seeing Tim’s data above, maybe these sellers were all intentionally over-pricing!

    http://blog.seattlepi.com/realestate/2007/09/13/it-was-the-best-of-markets-it-was-the-worst-of-markets-working-title-is-your-market-constipated/

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  44. 44
    Pegasus says:

    RE: Carla E @ 35 – Maybe people are having trouble justifying buying a 50 plus year old home with no garage for what is now 55 percent over what you paid in 2002? You do realize the general trend in prices for the past five years is down? Drop the price about another 100K and you might get a bite.

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  45. 45
    David B. says:

    Regarding undesirable residents in neighborhoods, “corndogs” sure seems bitter and unpleasant enough that I’d regard his presence in a neighborhood as undesirable…

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  46. 46
    ARDELL says:

    I’m surprised this thread didn’t discuss how much of a “buffer” is needed between asking and expected sold price (the comps) for original negotiation and home inspections concessions.

    EVERY seller has to price “above the comps” as the comps are “after buffer”. It is always wrong for a seller to fall in love with their asking price to the point where they are expecting the net sold price to BE equal to asking price. In that regard 100% of sellers should be pricing at something above “the comps” as to sold price, not 32% of them.

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  47. 47
    Natalia Orinko says:

    RE: Ira Sacharoff @ 3

    The Russians are coming…And they won’t pay close to the asking price. Russian immigrants are moving to Seattle in large numbers. A full generation has learned the ropes when it comes to west coast real estate. I’m not one of them but I have many cousins who are. Never pay retail is an old Jewish saying. And while we are not Jewish, it is right on the money.

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  48. 48

    RE: Natalia Orinko @ 47 – So if someone is selling a $200,000 house for $170,000, you’d try to negotiate that down?

    List price can be high or low. High is much more common, but low happens too.

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  49. 49

    […] You may recall that nearly a third of sellers will overprice on purpose. […]

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