Understanding the market is what it is!

I’m not sure if, internally, to groan or laugh every time someone says, “My house just sold for much less than it’s worth, because the market is bad.” Probably depends on my mood at that time. Moods can be what they are, but the market is what it is.

That house sold for a price on a specific date. It sold for what it’s worth. Worthwhile, or “value” is determined by what a buyer is willing to pay, and what a seller is willing to assume, on any given day. The market determines the value and the market is determined by a multiple of factors including supply, demand, economic conditions, interest rates, availability of funds, and other external influences. Other external factors may include foreclosures or short sales. These add to the supply houses and are being marketed over the typical seller’s motivation. Some market segments with a large number of these lists. Varies from state to state, community to community, and price range of the price range. In some areas the number of foreclosed home sales make up the vast majority of sales, and establish the market for that area. owner private listings have to compete with bank owned lists, reducing the list and sales prices.

Declining markets are clues. An obvious clue is the number of for sale signs in a particular neighborhood. Of the homes for sale, how many are vacant? vacant houses are often owned by banks. Reduction, on a consistent basis of list prices is another. The houses are often a price that other homes in recent years have been sold. With little activity or promising results, prices are reduced until the activity and start collecting projections. Buyers pick up on this trend, and “sit” on the advertisement until the price is too good to refuse.

In a few words in the example at the beginning of this story can be a bad market, but is the market. When the market was good (remember those days) And a house is sold, no one said “My house was sold for much more than its value because the market is so good.” Accepted “good” because the market value of your house went up, and that they support. When we are in a declining market, we can not deny it. Thus, on any given day I remember, the market is what it is. “