02-11-2011, 05:28 AM
My guess (IMHO just a guess!) is that like when real estate was going up, everyone jumped in by 95% to the top, people are jumping in at 95% to the bottom. (my 95% is not any prediction just something to use for illustration purposes. Just like sellers complained when they missed that top by 5%, buyers will do same about missing bottom by 5% but if your plan like hotcatz's is to live there long term, then 5% means little over 30 yrs - 1/6 of 1%.
Our property that is being sold was priced at one time at about double what we paid. We are selling for a little over our cost because we are making repairs, and the subdivision was conditionally approved. But we figured our expenses and labor cost and that is the percentage we used to price it. If the subdivision hadn't been approved it would not be worth more than we bought it for IMHO. The subdivision is the big item making our listing pricing correct. The repairs are making it visually appealing, like fixing the tired paint on interiors for people who don't see past that stuff, and then the behind the scenes repairs that are the expensive repairs that no one sees but home inspectors, and doesn't make it more appealing but makes it pass home inspections.
Our property that is being sold was priced at one time at about double what we paid. We are selling for a little over our cost because we are making repairs, and the subdivision was conditionally approved. But we figured our expenses and labor cost and that is the percentage we used to price it. If the subdivision hadn't been approved it would not be worth more than we bought it for IMHO. The subdivision is the big item making our listing pricing correct. The repairs are making it visually appealing, like fixing the tired paint on interiors for people who don't see past that stuff, and then the behind the scenes repairs that are the expensive repairs that no one sees but home inspectors, and doesn't make it more appealing but makes it pass home inspections.