Comments on: Homeowners Delusional On Values – More Dangerous Than Banking Crisis?

By: Jonathan Blackwell

Jonathan Blackwell — Fri, 07 Nov 2008 22:36:53 +0000

7 years in the mortgage business and there is no question that you are correct, the average homeowner has no idea what their home is worth.

By: Ned Carey @ Baltimore investing

Ned Carey @ Baltimore investing — Wed, 05 Nov 2008 09:37:57 +0000

>it won’t matter how loose or tight mortgage underwriting is . . . because, there will be no one standing in line to borrow!

Yes people forget that the market had slowed long before the mortgage crisis hit. The mortgage crisis only made it worse.

By: Alice Spencer

Alice Spencer — Mon, 03 Nov 2008 10:33:33 +0000

The economic climate is in such flux who knows what properties a re worth day to day.

By: steve jenings

steve jenings — Mon, 03 Nov 2008 10:29:47 +0000

Yes, I agree as a home is only worth what someone is willing to pay for it!

By: Richard Newquist

Richard Newquist — Sun, 02 Nov 2008 12:39:44 +0000

Your observations are correct! I am a real estate agent and my buyers have made offers on short-sales where the banks haven’t even responded. . .AT ALL! They’re waiting to see what they get out of the so-called “bailout”.

Sellers keep their prices high because they’re waiting for someone to cruise by and buy their house on an impulse. They know they’re overpriced but they aren’t aware of all the information out there that buyers can get to give them (buyers) a very good idea about COMPARATIVE MARKET VALUE.

Owner-Sellers also under-estimate what is involved in marketing and sales. I haven’t met ONE of them who has a marketing strategy. They don’t know who to target, where to advertise or how to get the message out there. Their perception is that agents do very little and get a big commission so they’ll do it themselves. . . and, unfortunately, they’re wrong.

By: Rehab702

Rehab702 — Sat, 01 Nov 2008 18:06:54 +0000

I absolutely agree that people are out of touch. When the housing market first stalled, Pulte homes here in Las Vegas took action. They cut the price on the homes they were selling, sometimes by as much as $100,000. People who had bought homes shortly before the cut were protesting in the streets and complaining to anyone who would listen, demanding to get money back. These people sued the builder and lost, the seller can set whatever price people are willing to pay. Pulte saw the writing on the wall and slashed prices in order to move inventory. The move worked for them while most other builders wound up sitting on a lot of inventory as the market stalled. People saw it as the “greedy” builder taking advantage of them, I’m sure they still think that their homes are worth what they paid for them.