I call this a “Zero-Basis” market.
In this squirrelly economy, house values can be tricky to nail down.
We all know what the Sellers THINK their houses are worth because we can clearly see how the “For Sale” houses are priced . . .
Are any of them SELLING at or close to their listing prices?
Are any of them selling at ALL?
Often, this enigma shows up when the ENTIRE neighborhood is over-priced . . . and when that happens NONE of the houses sell . . . PERIOD!
This over-priced neighborhood becomes invisible to the Buying public.
Esteemed members of the Neighborhood would argue that “My Street is SPECIAL” . . . “The dirt here is FAR more valuable than the dirt in other neighborhoods” . . . “Our neighborhood is special and should be worth more than the others”
The Buyers don’t buy these rationalizations these days. “Why pay $200/SF here when I can get so much more for money over THERE?”
I’m certain every city has neighborhoods and streets afflicted by these delusions of grandeur. They are easy to spot – Lots of rusty real estate “For Sale” signs rotating through the yards as the Sellers change Agents (Of course, it MUST the REALTOR’S fault if it’s not selling) . . . and time passes.
Every so often a house SELLS (15-25% “Below Market”) and everyone relishes in their denial by conjuring up all the reasons it sold at that ridiculously low price . . . Those Sellers were DESPERATE . . . or had a lot of equity and “Gave it away” . . . or are JERKS who are ruining the values in our fine neighborhood.
When there are no sales to justify the listing prices in any neighborhood, there is no (zero) basis for determining the values of the properties . . . and it’s not productive to hallucinate a value range that makes the entire neighborhood virtually invisible to the Buying public.
Bottom line: If you own a house in one of these neighborhoods, be the renegade “JERK” and price your home in alignment with what’s going on in the MARKET, and I PROMISE your house will suddenly become the gleaming diamond in the mix . . . AND it’ll be a “Flash in the pan” because it’ll SELL.
Don’t worry about what the neighbors will say about you because that’s none of your business, and enjoy the freedom of being able to turn the page and MOVE ON.
I know of many of these neighborhoods in the Nashville market (Many of them condos), and I believe that ALL houses are sellable in this market . . . and I am poised and ready to TELL THE TRUTH to any Sellers out there who are ready to move on . . . ready for a candid, no-nonsense pricing strategy that will get their SOLD.
Just give me a ring, and we’ll make YOUR house be that flash in the pan.
PS: There are REALTORS just like me in every real estate market 🙂
PPS: Pareto Realty is “Fixin’ to GROW” and we are now interviewing agents in Middle TN to join our High Performance Real Estate Sales Team – Contact me for more info.