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good afternoon you know I uh I had recorded this earlier and I forgot to turn the microphone on so you know that's that's what you're that's what we're dealing with today um I wanted to get into something I saw on Twitter I thought it was kind of interesting I'm going to pull it up right now for you it's right here um it's it's random it's all good out but it says um now more than ever we need Unity among homeowners I see quite a few weak Towers in the area listing their homes for less than their worth I understand the desire to sell your house quickly but listing your home for a lower value than what it's worth hurts comps for all of your neighbors this is especially painful for those of us who purchased recently and can't go underwater otherwise they will have trouble refinancing when rates go down I added the US so please have some humanity and stand with your neighbors and do not lower home prices if we work together to secure our communities real estate market we can persevere through this winter and into the spring where sales prices will go up again now as a real estate agent um you know I'm pretty pretty horrified by this and the reason why is I know what happens when people try to keep their houses priced artificially high in the end and it normally doesn't work out very well so I just I just I wanted to go over some of the thoughts about this so look whatever whatever there's a house on the market that comes on the market that is an indication of price it's a signal of of price or value like what are you going to pay for this property and when it doesn't go for its asking price and goes below that that shows that they did not it was a mispriced property um so you get this situation where I was reading an article and says in a normal Market between 35 well between 30 and 35 percent of all houses have at least one price reduction before they're sold and that's in a normal Market um that has not been the case for the last three years in the United States I'm pretty sure at least it hasn't been that way in St Louis I mean we weren't seeing any price reductions we were seeing over ask over ask over ask now yeah on the houses that aren't really well done aren't really move-in ready that are dated those houses do uh tend to come to Market overpriced and they tend to sit as a result but I just I just know from experience that if you if you decide that you're going to keep your house prices High artificially you're going to have problems so um

is it true like what we did before in the great financial crisis is they typically appraisers and things didn't typically look at foreclosures they would look at those as like a different kind of property and short sales as well I thought that was a little weird at the time and in in this case I do want to mention that if you do live in a in a house and there's like six other houses that have sold for way less than years and they're very comparable even if someone did put an offer in on your house and it was accepted at a much higher say twenty or thirty thousand dollars extra you know it may not appraise and while we've seen in this crazy market we've been in houses going and not appraising and yet still people moving in because they uh put in you know that they would cover the cover the difference in cash or something like that it is something to pay attention to before 2020 uh maybe 2019 it would be Unthinkable to to go ahead with a house purchase if the house didn't appraise that that just it just was not something that people would uh wrap their minds around um and I suspect that it will go back to that as we continue on down this path of uh of homes that are quite unaffordable

it's uh wait I wanted to bring up something that I thought was interesting it was at the end it says if we work together to secure our community's real estate market we can persevere through this winter and into the spring where sales prices will go up again and I would just say that that's that's a dicey bet what I suspect is happening in this in this neighborhood is is the houses are kind of reversion to mean they're kind of coming back down after the affordability issues remember if a house is worth four hundred thousand dollars at two percent okay how in the world is it still worth uh that amount of money it's seven or eight percent I mean the amount of payment on that house the difference is ridiculous so these prices have to come down and they will keep Rising it appears that they'll keep raising rates until that and until we get the uh until we get this prices down which I don't look I don't want anybody to lose money on their home or anything like that I'm just saying it's highly unlikely that these prices are continue to going to continue to go up and go up and the idea that if you just wait until the spring that things are all going to be better is is uh is wild so

um I wanted to look at I wanted to look at this argument that the neighborhood should stick together and it's it's funny it's it's always like if you think about an HOA for example people live in an HOA because they want their houses all to look a certain way and they and they and they are surprised when the HOA comes at them for something that they've done that doesn't fit in with the rest of the neighborhood that's kind of that's the same thing that's the same Collective responsibility that you see with this Behavior here with this tweet um and there's nothing wrong with having pride in your neighborhood there's nothing wrong with you know wanting everybody to keep it look looking nice so that house values Stay High however that's a big difference between um that and someone saying I'm going to price my house intentionally High just for the benefit of my neighbor it's like I've lost my job and I can't afford my house payments and I need to move and the market is telling me that the price is going to be lower than what everybody else in the neighborhood is paid so far but I should just keep it high and I should go ahead and suffer I don't see that that I don't think that's the right way to go I believe in the individual and I believe that look if you if you have to move out and you I mean I'm not saying a fire sale I'm not saying price the house you know 20 lower than what it's what it's worth in the market what I'm saying is is whatever the market is saying and you need to sell you need to concentrate on yourself and your well-being of your family the people that live in the house so I I reject this 100 percent um and I wanted to kind of couch this in in something that I that I thought was uh interesting that I that I thought about last night and that is there's a certain part in town there's a certain place in St Louis where the homes are they were all built at a certain period of time right around the 1950s 1960s and it's a wealthy part of town it's where a lot of expensive homes are um but what has happened over the years is the people there had just gotten older and older and older and they never really updated their home even though they had the money to do so uh and their houses are comically out of date okay but they still believe in these high prices for their homes and so you'll you'll see a house come to market and sometimes it'll be on something like Zillow going wild because it's so outlandish and they it's like the P the people feel like because they live in this space okay that they are entitled to this huge amount of money for these houses that are that are you know 60 and 70 years outdated I mean it's it's impressive and so you can try to keep your house prices that high now what people do naturally in St Louis is they they don't even pay attention to that district and they move they they look for houses elsewhere I won't give I Won't Give the names of the places because I don't want to throw anybody under the bus but I'm just saying like if you have a house built in 2000 okay and it's got everything and then you see this house in a different part of town that has nothing and has to be completely redone it's not real hard to figure out where the value is and so that's what happens and that's what ends up happening another fear that I have is there are certain agents who have like an iron grip on a neighborhood okay or at a location so I'm I'm thinking in in particular as a place in the city where there's these two agents and they pretty much just get every single listing and so they have over the years gotten a little squirrely with their pricing like they they believe really highly I think really highly of the houses they list and it's comical because when someone else comes into that space and lists a house that the house will often sell within days whereas these clowns have their houses listed for months at a time and they act like they just don't know why the houses aren't selling and the reason why the houses aren't selling is because they're priced too high and they've lost touch with any other part of any other neighborhood or anything else to compare their properties to I I think there's also this subtle thing about them and I don't know if it's true but you know if you leave your sign in a neighborhood for months okay and you have three or four of them after a while people just know your name and I and I often wonder if that's the only reason why they even have the success listing properties that they do because they don't list them for the right price they're always way too high but at the same time their signs are in the yards for months and months at a time so those residents probably think they're doing a good job so that's kind of crazy um but I was curious am I am I wrong to think that uh that you should you should look out for yourself first in a situation where you need to sell your home and not listen to these uh what I've called Neighbor scolds these people that want to tell you how to live your life and want to tell you how to list your home for sale and you know possibly you know who you should list it with and how much it should be listed for I just find that to be um uh disgusting disgusting behavior and not something that I want to be a part of but you let me know put it in the comments section and you know maybe I'm wrong maybe I'm the one that thinks that uh maybe I'm the wrong I'm in the wrong and I and I need to be corrected by you and that we should all live in this Collective wonderful place and everything we should all hold hands and everything should we'll always be perfect it's not the way my life's worked out but maybe it is for you so let me know in the comments thank you for watching thank you for listening I'll catch you on the next one