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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: John Chen who wrote (924)	10/21/2001 7:32:01 PM
From: Tradelite	Read Replies (1) \| Respond to of 306849

<<It's not that it dropped 30-50%. The point is: 'was it worth that much>> Good point. It is pointless to look at sellers' asking prices for homes, and it is pointless to look at how many times or how many percentage points their prices eventually were reduced. The one and only thing that counts is the amount for which a home sells and what other comparable homes have sold for in the nearby area....plus, we need some inside information about what other concessions a recent seller made to make the sale, such as making pre-settlement repairs at the seller's expense or paying some of the buyer's settlement expenses, plus many many other factors not reflected in the final selling price. No home is created equal to any other home. All homes differ....Are two homes which have identical floorplans, located in the same subdivision, created equal? NEVER. One home might be on a quiet cul-de-sac.....the other might be on the busiest street in the subdivision. Does one home require more repairs and refurbishing than the other but look identical from the street? Is one seller willing to give up more "side benefits" to the buyer than the seller of the supposedly identical home? Far too many factors go into prices and price reductions to make routine judgments such as "I will buy a home when prices go down X percent." That cut-and-dried decision could cost a buyer a lot of money or could cause a buyer to wait too long before making a buying decision.