The housing market has been in the news quite a bit lately. You would have to have been on another planet to not know that home prices have fallen far and fast. All the resulting foreclosures from the bad market have caused the entire U.S. economy to turn sour, which in turn, has caused more foreclosures and falling prices.
Yet the prices continue to fall and cannot seem to find bottom. One of the reasons it is taking so long is denial. Home owners across the country are well aware of the state of things but refuse to believe that their home is affected along with everyone else's.
No matter how many facts and figures their real estate agent throws at them they are listing their homes at or above the price they paid for it.
The problem is everyone think they are special, unique and therefore immune, and following that logic, their house too is special, unique and immune. Besides, no one wants to buy the most expensive house in the area.
Owners seem to be choosing to ignore the severity of the market. Especially home owners who did upgrades and expect to see that money back. Not only do they not want to loose the investment but they put a lot of work in and see their home as better than the rest, and therefore worth paying for. The problem is they are just plain wrong. Buyers in this market don't care what you paid or what work you put in, the only people buying right now are looking for deals.
The effect is even more pronounced when the owner knows what the neighbor's house sold for, because there's has got to be better than that. Someone telling you that you need to significantly drop your listing price is like someone calling your kids ugly.
The irony is that putting your house on the market for an inflated price could end up costing you more money. The longer you wait the lower prices get and putting your home up for too much extends the time your home will be on the market.
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