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     lseltzer Citizen Username: Lseltzer Post Number: 1393 Registered: 5-2001 |
bemused: Please explain how this would work. | ||||||||||||||||||||||||||||||||
| Joan Citizen Username: Joancrystal Post Number: 1519 Registered: 5-2001 |
The higher the sale price the higher the commission. Question is: What can a realtor do to drive the sale price up beyond what the property would otherwise go for? When close neighbors put there house on the market recently, their realtor (I don't know who they used) told them not to accept any offer until the house could be put up for bids. I understand that the house sold very quickly and for much more than any of us expected. | ||||||||||||||||||||||||||||||||
| lseltzer Citizen Username: Lseltzer Post Number: 1394 Registered: 5-2001 |
A realtor who drives the sale price up is just doing his/her job, since they work in the interest of the seller. | ||||||||||||||||||||||||||||||||
| Bjp Citizen Username: Bjp Post Number: 58 Registered: 10-2002 |
An interesting argument against "rational markets," bemused. Real estate markets aren't as deep as, say, stock markets, and so prices tend to be less predictable. But prices still tend to be rational--people do not often pay more for a house than they think the house is worth. Agents may scare people into bidding higher than they want to, but in the end, prices rationalize. The reason for the bidding wars is that real estate agents don't know how to price houses during such booming markets. Agents can't adjust quickly enough. Look at Montclair, where the new train service has sent prices up by 65% during a terrible economy. It's tough to figure out how to price a house when prices are going up with every sale. | ||||||||||||||||||||||||||||||||
| DBrown Citizen Username: Dbrown Post Number: 187 Registered: 11-2002 |
Last summer somebody I worked with sold his Millburn home to buy a larger Millburn home. He considered trying to sell without a realtor but a friend advised him that he would get a much higher price with the help of a realtor. After the fact, he said that the realtor contacted every other realtor in the area and most of them brought people to the open house. His house sold for much more than he expected because so many people were trying to buy it all at the same time. I would imagine that the same momentum simply does not exist if an owner finds one person at a time to show the home to. | ||||||||||||||||||||||||||||||||
| lseltzer Citizen Username: Lseltzer Post Number: 1395 Registered: 5-2001 |
In the April 2003 New Jersey Monthly the cover story is "What does $1 Million Buy?" and includes a table for each town in each county, which I will excerpt in part here:
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| bobk Supporter Username: Bobk Post Number: 2781 Registered: 5-2001 |
Interesting that the towns along the MidTown Direct line had significantly higher appreciation than the others. Larry, to impose on your good nature, how did Montclair do? | ||||||||||||||||||||||||||||||||
| lseltzer Citizen Username: Lseltzer Post Number: 1396 Registered: 5-2001 |
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| lseltzer Citizen Username: Lseltzer Post Number: 1397 Registered: 5-2001 |
A different look at things:
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| greenetree Supporter Username: Greenetree Post Number: 1543 Registered: 5-2001 |
FWIW, we bought in 1997. The house had been languishing on the market for 4 months. We contracted in January. By the time we closed in April, prices had started shooting up. Had we waited 6 months to contract, we wouldn't have been able to afford our house at the time. On our last refi in November (there have been 3 since 1997), our house had appreciated 128% since purchase. The difference between the reval valuation & the last appraisal was 50%. Now, I'm taking the November refi value with a grain of salt. But even then, if we were to sell right now, I'd expect no less than 6% below that number. But, we've got the best real estate value in town (hell, in Essex Co.) right now, so there's no way we'd sell. Where would we go, anyway? Couldn't afford anywhere else, even with our taxes. Which have gone up 32% since we bought. And we have done no major renovations. Only needed upgrades, like electrical, etc. I do agree, however, that prices are a bit inflated. But, since we bought so 'low' I don't feel as jittery as people who've bought in the last couple years. I still can't believe that 6 years makes such a difference. | ||||||||||||||||||||||||||||||||
| bobk Supporter Username: Bobk Post Number: 2782 Registered: 5-2001 |
Larry, thanks. I am just to cheap to buy the magazine.  The reason I asked about Montclair is that in one of those RE value charts the WSJ does on Fridays, a few weeks ago they showed Upper Montclair appreciating at around 40% last year. The miracle of MidTown Direct I suspect. | ||||||||||||||||||||||||||||||||
| xavier67 Citizen Username: Xavier67 Post Number: 154 Registered: 6-2002 |
Don't give up, Househunting! I agree with Shoshannah--better to buy a house that needs updating but in a location of your preference, than to buy a house in a block you don't like. To avoid a bidding war situation, consider buying a house that needs updating (everyone wants to buy an updated house!). This way, you could update the house at your pace and financial leisure--and exactly to your taste. As for repairs, as you'll see, there is hardly a house in Maplewood without some water in the basement-it's not something that little regrading and french drains can't fix. Good luck and hope to see you around! John X. Kim 480 Summit Ave | ||||||||||||||||||||||||||||||||
| Nlanzieri Citizen Username: Nlanzieri Post Number: 48 Registered: 1-2003 |
I agree with Zavier. I think a lot of people passed up this house we purchased in November 02 because it wasnt updated enough, but it was all there underneath the veneer and wood paneling just waiting to come out. We moved in and did the work ourselves very quickly and this house now has all the charm and conveniences and new kitchen like all of the others we had to go through the bidding wars just to loose..best of all no bidding wars on this one.. | ||||||||||||||||||||||||||||||||
| Ed May Citizen Username: Edmay Post Number: 1267 Registered: 9-2001  |
do you mean lose? Ed May | ||||||||||||||||||||||||||||||||
| luv2cruise Citizen Username: Luv2cruise Post Number: 41 Registered: 12-2002 |
you know damn well that he/she meant lose. Was it that important to point it out? You're a loser. | ||||||||||||||||||||||||||||||||
| us2innj Citizen Username: Us2innj Post Number: 595 Registered: 5-2001 |
I think EdMay falls into the category of "looser."  | ||||||||||||||||||||||||||||||||
| Marilyn May Citizen Username: Marilynmay Post Number: 88 Registered: 7-2002 |
Lose lips sink ships | ||||||||||||||||||||||||||||||||
| ajc Citizen Username: Ajc Post Number: 1085 Registered: 9-2001 |
Luv2cruise, "you know damn well that he/she meant lose. Was it that important to point it out? You're a loser." Us2innj, "I think Ed May falls into the category of "looser." Who rattled your cages? That was nasty guys! You know damn well Ed meant no harm, but it looks like you two sure did! Two against one isn't fair! I hope you don't mind if I step in and even up the sides here? It looks like you "2"'s are just out and about, Cruise-inn for a bruise-inn? What's the matter, the war in Iraq isn't enough for you two? ========================================================= Oh, don't take my comments too serious; it's just that nobody has picked on me lately and its made me jealous to see you so rude to Ed and not me! | ||||||||||||||||||||||||||||||||
| us2innj Citizen Username: Us2innj Post Number: 598 Registered: 5-2001 |
deleted | ||||||||||||||||||||||||||||||||
| ajc Citizen Username: Ajc Post Number: 1088 Registered: 9-2001 |
I know, I know! But why was it necessary for the two of you 2's to jump Ed's bones? Hey, two wrongs don't make a right... right? I'm sure if Nlanzieri had a problem with Ed we would have read about it... For what ever reason there seems to be much less in the way of personal attacks against each other lately. This makes me happy, lets try and keep it that way. Peace brother... |
