It's human nature to expect, or "deserve" to get what your neighbor got just a few months ago. Pricing your home at $x just because home Y got $y 6 months ago is irrelevant. It's what the market will bear today. Good god this is basic stuff, isn't it? Isn't it?
Talk to folks who would've loved to sell their Pets.com at $500 a share when it was trading at $5, just because they bought it for $500 or that it was "worth" $500 at one time.
Interesting article from Florida on falling prices, and a tale of two homeowners:
Homeowner #1 (the ignorant one):
Jeanne Dobus of Indian Harbour Beach, who put her home on the market in October, said she has been disappointed so far in the response -- which has been slow.
"I've never seen such a glut of homes for sale in this area," Dobus said, noting the asking price of her four-bedroom home is $349,000.
"People are offering $250,000 to $260,000," Dobus said. "That's just not the right price."
Homeowner #2 (the realistic one):
Kathy Smith had a much-easier time selling her Port St. John home -- asking price $89,900.
Smith, who moved to Fort Pierce, put up a sign in her yard Friday, and had it sold that afternoon.
"It's because of the price," Smith said. "We probably could have asked for more, but we needed to move quickly."
February 16, 2006
Posted by blogger at 2/16/2006