The Inland Empire real estate market has been in the toilet now for 2 years. You'd think the pricing of properties these days would be fairly consistent. The current price trend is well established. Take the latest comp and subtract 12k per month since it sold and that should be your current price. But 75% of the new listings are still hitting the market too high. Many of them are ridiculously too high. I understand that the people owe more than their homes can sell for in the current market. But what they owe is irrelevant. Buyers are not going to overpay because they feel bad for an upside down seller. And no bank is going to give a loan for more than a property will appraise for. So, what is the point of even listing these homes??
Here is a perfect example I ran across today.
4931 Nottingham in Riverside just listed at $660k. The home is a 5 bedroom 3 bath one story ranch, 3281 sq/ft on just under 1/2 acre. The realtor says this "Tired of making Offers on Bank owned homes or Short Sales with little or no reply? Our Seller will responds to all reasonable offers within 72 hrs of receipt".
Ok, what would be a reasonable offer? How about we go by the last comparable sale. Fortunately there is an exact model match in the same tract that sold only a month ago. 10084 Willowbrook is the same floorplan as the Nottingham house. It sold in late May for $441k. That comp is already a month old and the current prices are dropping at about 12k per month so a reasonable price for the Nottingham home is $429K.
That is $230K less that the asking price. I wonder if they'd consider that a reasonable offer? In reality though, it is a reasonable offer based on the last comparable sale. So again I ask "what is the point of even listing a home like this?" Any Realtors out there care to chime in on why other Realtors are still taking these crazy listings?