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‘Just Forget It’: US Home Sellers Are Giving Up
You know what? Forget it.
That's what scores of American home sellers said in September, when delis
As a seller, my math is as follows: The cost of materials and labor have continued to rise, if this house costs $800 to build, why should I sell it for $600?
If the cost of home production falls, then my math is wrong
If you bought a stock for $100, why would you sell it for $80? Same reasoning. I both cases you would do this if the lower price was what the asset was worth and you had a better use for the money. I have owned five houses over the years. Three were bought when rates were more than 9%. One was bought for cash. With the total costs properly calculated I made no money on any of my houses. They were lousy investments, as most houses actually are. My other assets have done much better.
Me too. The only one that I made money on is an unrealized gain. 🙂
I flip/build/rent houses on the side, and I’m living in my 8th house in the past 25 years. Right now the math isn’t working for me and I’m not building anything (which isn’t great for my mental health). I have 3 lots and an unsold house I’m just sitting on for the time being. I live in a desirable market and people aren’t even looking.
In your analogy, the house is a commodity and the price is set by the market. True, for the most part. In my version, I didn’t get enough interest and pulled the IPO
As a recent buyer , I was aware of the mortgage rates going in , what amazed me was all the tack on costs as part of the transaction , felt like every little charge for documents or certificates was way over the top. The final list ran to 2 pages
I am one of those sellers.
Originally put ours on the market for $650,000,
Knocked the asking price down 2 months later to $630,000 because there weren’t even any lookers.
3 months later, lowered the price to $615,000 and finally SOLD it two months later for $605,000.
On the market for 7 months… but its gone.