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In today’s real estate-focused episode, we tackle the polarizing issue brought up by a homeowner who passionately urges her neighbors to stand united and not lower their home listing prices. Delving deep into the complexities of housing markets, community solidarity, and individual financial choices, we aim to shed light on both sides of the argument. While unity in upholding home values might seem beneficial on the surface, is it truly fair to restrict homeowners from making individual decisions? How does this impact the broader real estate market, property values, and future home sales? Join us as we explore the intricate balance between ethical considerations, financial implications, and community dynamics in the housing industry. Whether you’re a homeowner, a real estate agent, or someone looking to understand housing trends, this discussion offers valuable insights. Share your opinions and experiences in the comments, and let’s navigate this property pricing debate together.
#HomePriceDebate #NeighborEthics #RealEstateDilemmas
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[00:00:10] Good afternoon.
[00:00:12] You know, I 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.
[00:00:23] 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.
[00:00:31] It’s random.
[00:00:33] It’s all get out. But it says, now more than ever, we need unity among homeowners. I see quite a few weak cowards in the area listing their homes for less than they’re 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 community’s real estate market, we can persevere through this winter and into the spring, where sales prices will go up again.
[00:01:10] Now, as a real estate agent, I’m pretty horrified by this.
[00:01:16] 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 wanted to go over some of the thoughts about this. So, look, whenever there’s a house on the market that comes on the market, that is an indication of price. It’s a signal 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 shows that there was a mispriced property.
[00:01:51] So you get this situation where I was reading an article and says in a normal market, between 30 and 35% of all houses have at least one price reduction before they’re sold, and that’s in a normal market.
[00:02:06] 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 tend to come to the market overpriced, and they tend to sit as a result.
[00:02:29] But I just know from experience that if you decide that you’re going to keep your house prices high artificially, you’re going to have problems.
[00:02:40] So is it true, like, what we did before in the great financial crisis is appraisers, and things didn’t typically look at foreclosures.
[00:02:57] 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.
[00:03:04] And in this case, I do want to mention that if you do live in a house, and there’s like six other houses that have sold for way less than yours and they’re very comparable, even if someone did put an offer in on your house and it was accepted a much higher, say, 20,000 or $30,000 extra, 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 put in that they would cover the difference in cash or something like that, it is something to pay attention to before 2020, maybe 2019. It would be unthinkable to go ahead with a house purchase if the house didn’t appraise. That just was not something that people would wrap their minds around, and I suspect that it will go back to that as we continue on down this path of homes that are quite unaffordable.
[00:04:04] In this Tweet, I wanted to bring up something that I thought was interesting 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 a dicey bet.
[00:04:21] What I suspect is happening in this neighborhood 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 $400,000 at 2%, okay, how in the world is it still worth that amount of money at seven or 8%? I mean, the amount of payment on that house, the difference is ridiculous. So these prices have to come down and they will keep raising it appears that they’ll keep raising rates until we get these prices down, which, 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 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 wild.
[00:05:15] I wanted to look at this argument that the neighborhood should stick together. And it’s funny.
[00:05:24] It’s always like if you think about an HOA, for example, people live at an HOA because they want their houses all to look a certain way, 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.
[00:05:42] That’s the same thing. That’s the same collective responsibility that you see with this behavior here with this Tweet.
[00:05:52] And there’s nothing wrong with having pride in your neighborhood. There’s nothing wrong with wanting everybody to keep it looking nice so that house values stay high. However, that’s a big difference between that and someone saying, I’m going to price my house intentionally high just for the benefit of my neighbors. 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 has paid so far, but I should just keep it high and I should go ahead and suffer.
[00:06:28] I don’t think that’s the right way to go. I believe in the individual, and I believe that look, if you have to move out, I’m not saying a fire sale. I’m not saying price the house 20% lower than what it’s worth in the market. What I’m saying 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 reject this 100%.
[00:06:55] And I wanted to kind of couch this in something that I thought was interesting, 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.
[00:07:20] 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. And their houses are comically out of date, okay? But they still believe in these high prices for their homes. And so you’ll see a house come to market, and sometimes it’ll be on something like Zillow gone Wild because it’s so outlandish. And the people feel like because they live in this space, that they are entitled to this huge amount of money for these houses that are 60 and 70 years outdated.
[00:07:56] I mean, 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 don’t even pay attention to that district, and they look for houses elsewhere.
[00:08:10] 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 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 or on a location. So I’m thinking 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.
[00:08:56] They think really highly of the houses they list. And it’s comical because when someone else comes into that space and lists a house, 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.
[00:09:26] I think there’s also this subtle thing about them, and I don’t know if it’s true, but if you leave your sign in a neighborhood for months and you have three or four of them, after a while, people just know your name. 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.
[00:09:59] But I was curious. Am I wrong to think that you should look out for yourself first in a situation where you need to sell your home and not listen to these 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 possibly who you should list it with and how much it should be listed for. I just find that to be 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 maybe I’m wrong. Maybe I’m the one that thinks that maybe I’m in the wrong 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 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.
[00:00:12] You know, I 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.
[00:00:23] 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.
[00:00:31] It’s random.
[00:00:33] It’s all get out. But it says, now more than ever, we need unity among homeowners. I see quite a few weak cowards in the area listing their homes for less than they’re 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 community’s real estate market, we can persevere through this winter and into the spring, where sales prices will go up again.
[00:01:10] Now, as a real estate agent, I’m pretty horrified by this.
[00:01:16] 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 wanted to go over some of the thoughts about this. So, look, whenever there’s a house on the market that comes on the market, that is an indication of price. It’s a signal 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 shows that there was a mispriced property.
[00:01:51] So you get this situation where I was reading an article and says in a normal market, between 30 and 35% of all houses have at least one price reduction before they’re sold, and that’s in a normal market.
[00:02:06] 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 tend to come to the market overpriced, and they tend to sit as a result.
[00:02:29] But I just know from experience that if you decide that you’re going to keep your house prices high artificially, you’re going to have problems.
[00:02:40] So is it true, like, what we did before in the great financial crisis is appraisers, and things didn’t typically look at foreclosures.
[00:02:57] 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.
[00:03:04] And in this case, I do want to mention that if you do live in a house, and there’s like six other houses that have sold for way less than yours and they’re very comparable, even if someone did put an offer in on your house and it was accepted a much higher, say, 20,000 or $30,000 extra, 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 put in that they would cover the difference in cash or something like that, it is something to pay attention to before 2020, maybe 2019. It would be unthinkable to go ahead with a house purchase if the house didn’t appraise. That just was not something that people would wrap their minds around, and I suspect that it will go back to that as we continue on down this path of homes that are quite unaffordable.
[00:04:04] In this Tweet, I wanted to bring up something that I thought was interesting 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 a dicey bet.
[00:04:21] What I suspect is happening in this neighborhood 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 $400,000 at 2%, okay, how in the world is it still worth that amount of money at seven or 8%? I mean, the amount of payment on that house, the difference is ridiculous. So these prices have to come down and they will keep raising it appears that they’ll keep raising rates until we get these prices down, which, 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 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 wild.
[00:05:15] I wanted to look at this argument that the neighborhood should stick together. And it’s funny.
[00:05:24] It’s always like if you think about an HOA, for example, people live at an HOA because they want their houses all to look a certain way, 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.
[00:05:42] That’s the same thing. That’s the same collective responsibility that you see with this behavior here with this Tweet.
[00:05:52] And there’s nothing wrong with having pride in your neighborhood. There’s nothing wrong with wanting everybody to keep it looking nice so that house values stay high. However, that’s a big difference between that and someone saying, I’m going to price my house intentionally high just for the benefit of my neighbors. 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 has paid so far, but I should just keep it high and I should go ahead and suffer.
[00:06:28] I don’t think that’s the right way to go. I believe in the individual, and I believe that look, if you have to move out, I’m not saying a fire sale. I’m not saying price the house 20% lower than what it’s worth in the market. What I’m saying 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 reject this 100%.
[00:06:55] And I wanted to kind of couch this in something that I thought was interesting, 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.
[00:07:20] 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. And their houses are comically out of date, okay? But they still believe in these high prices for their homes. And so you’ll see a house come to market, and sometimes it’ll be on something like Zillow gone Wild because it’s so outlandish. And the people feel like because they live in this space, that they are entitled to this huge amount of money for these houses that are 60 and 70 years outdated.
[00:07:56] I mean, 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 don’t even pay attention to that district, and they look for houses elsewhere.
[00:08:10] 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 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 or on a location. So I’m thinking 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.
[00:08:56] They think really highly of the houses they list. And it’s comical because when someone else comes into that space and lists a house, 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.
[00:09:26] I think there’s also this subtle thing about them, and I don’t know if it’s true, but if you leave your sign in a neighborhood for months and you have three or four of them, after a while, people just know your name. 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.
[00:09:59] But I was curious. Am I wrong to think that you should look out for yourself first in a situation where you need to sell your home and not listen to these 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 possibly who you should list it with and how much it should be listed for. I just find that to be 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 maybe I’m wrong. Maybe I’m the one that thinks that maybe I’m in the wrong 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 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.