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I have been looking to buy a home in Portaland, Oregon, but I am having to look at many overpriced properties which are un-livable. Why do some home owners think they can let a property go to the wayside, and still earn equity in the process. Are they really as dumb as they seem?

7 Thoughts on Why do some home owners expect to sell a property with an equity markup, and without having done repairs?
  1. Reply
    sdn90036
    August 30, 2011 at 10:39 am

    This is happening all over the country. The sellers are either idiots or they think the buyers are idiots. It doesn’t make any sense. If you really want to sell your house, the price has to be realistic.

    Good question.

  2. Reply
    Fonz
    August 30, 2011 at 11:10 am

    Must be working if you are still searching.
    You call them dumb, but they OWN the property. What do you have?

  3. Reply
    mikeburns55
    August 30, 2011 at 12:08 pm

    For many years the housing market has been great for sellers. These people are slow to get the message that the bubble has burst.

    Very few houses are selling right now because banks have tightened up a lot on lending. The ones that are selling are the ones that have been deeply discounted.

    My advice: take a good long time and shop around. The more you wait, the better bargain you will find.

  4. Reply
    Stephen L
    August 30, 2011 at 12:14 pm

    Not dumb just greedy! Plus they are in denial with today’s economic outlook, GDP, PPI CPI and the most notable of all, the housing bubble. Keep in mind, houses have not seen a depreciation in many year, and home owners who are selling houses, or where trying to flip them just are not willing to admit defeat.

    Hope that helps, enjoy your day.

  5. Reply
    Enlightened Business Solutions
    August 30, 2011 at 12:19 pm

    As an onwner they have a higher perceived value of their own property. Remember some of them also got caught making a second mortgage or refinancing with lower rates to get their equity out and now their houses are worth less than they owe on them after this market downward spiral.

    So it is up to you to bring them back down to earth. The way to do this is to visit their house and look at every little detail of the house and the property.

    Then make a list of what was wrong and how much it will take to repair. Then also do a market analysis of the area and get comparables sold and for sale.

    Put all of this information together with your offer and if your dealing with an agent gift all the information to him to give to the owner or write all this information on an addendum to turn in with your offer.

    This way your offers are more justifiable and more offers will be accepted than rejected.

    Good Luck

  6. Reply
    quizzard123
    August 30, 2011 at 12:34 pm

    You don’t understand how the housing market works. They bought at x, and now a few years later want to sell at x+y. Is it worth it? Depends on whether anybody wants to BUY at that price.

    Houses don’t really have an intrinsic value, they (like most things) are worth what someone wants to pay for them.

    So if they sell, fine, then their price was right. If they don’t sell, then they either lower the price until they do, or they hold on to the house. As a poster above noted, they have the house, you don’t. Maybe they can afford to wait.

    It all depends on the people selling and buying. If the sellers are okay with sitting there until they get their price, they probably will one day. If they are in more of a hurry, they’ll have to think about dropping.

    Meanwhile you just keep looking until you find something you like at a price you think is fair. If you are content to wait, you might eventually get what you want. That’s not certain as historically housing has risen, not dropped over time, and you might find yourself falling further behind the market. On the other hand, if you need to buy, you’ll have to think about adjusting what you think is reasonable, to match the market.

    Think of it as a game of chicken, whoever blinks first loses.

  7. Reply
    Mary B
    August 30, 2011 at 12:52 pm

    Because they can.

    Have you seen the homes in California? A shack in some areas will cost you $ 500,000….where I live, that price will get you a substantial property in some of the best neighborhoods.

    People here watch the housing shows on HGTV and we about pee our pants laughing at what people will pay for a run-down, 1100 sq ft home in California….to me, that isn’t worth living where the weather is nice.

    It’s about supply and demand…a house IS WORTH WHAT SOMEONE WILL PAY FOR IT.

    No home is EVER overpriced….if you have a buyer.

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