I'm in the metro Atlanta area and inventory is plentiful and homes are increasingly having 90+ days on market. I understand that as a listing agent, you can't force the seller to list at a certain price, but my goodness... Maybe I was lucky each time I had a listing. But my sellers agreed to my suggested list price, and all of their homes were under contract quickly. In this market with increasing interest rates, hella inventory, and longer DOM, I don't understand these inflated prices, especially from sellers who have only been in their homes for a couple of years and haven't been in the home long enough to gain much, if any equity. There's a house my client is interested in and it's listed at $675k. There are 5 other homes for sale in the subdivision ranging from $489k-$599k. The home for $599k has a fully finished basement, while the one for $675k has a partially finished basement. The home for $675k is newer, and the floor plan for my client is more desirable. But the floor plan isn't worth paying almost $100k more than the next highest priced home in the subdivision. The seller just bought the house last year and paid $650k. No improvements have been made except for a couple of wood accent walls. Everything else was the same as when they purchased. Previously, I submitted an offer on a house that was listed at $545k, but the most comparable home that sold recently in the neighborhood (sold about a month prior) sold for $490k. There are also 2 homes currently for sale in the subdivision and they're both less than $500k. So the offer wasn't for full ask considering that, but we were willing to do $525k because it was in good condition. The listing agent was argumentative about the price and sent me a "comp" for $570k of a house that recently sold in the subdivision but that house was FULLY renovated! And by fully, I mean top of the line kitchen, hooded stove, pot filler, waterfall countertops, cabinets up to the ceiling with glass cabinet doors on the upper cabinets, each bathroom completely renovated, freestanding tub, dual showerheads, the works. And the basement was the same grade as the rest of the home and had a full kitchen so had additional income potential. The house for $545k had no renovations and the basement had dropped ceilings, no kitchen, and was smaller. So I'm like yeah that's not comparable. So they countered at $535k and wouldn't budge so we didn't move forward. $525k was already going above because the home that was more comparable as far as finishes, size, etc sold for $490k and had $11k in seller concessions. Needless to say, the house is still on the market. I'm like losing a deal over $10k? Make it make sense. They will end up spending more than that on mortgage payments as it continues to be on the market, so I just don't get it.
There was another home of interest that was investor owned, they paid $389k for the home in January. The only thing they did was pull up the carpet in the basement and had laminate flooring put down. The rest of the home was the same as when purchased. They also had no seller disclosure because the seller never lived in the home. When viewing the home, there were signs of water damage, the roof was original (home build in 2002), original HVAC, and the house had not been updated. It was listed at $500k and has been on the market since March. I looked up the previous seller disclosure and there was mention of a roof leak. We offered $450k considering the condition of the home and the fact that the comps didn't support $500k. The only home in the subdivision that sold for $500k was that one and clearly the previous buyer overpaid, it ended up foreclosing and the investor bought it in January. They wouldn't accept for $450k and wanted $475k. We refused, the listing expired and the agent claimed they were likely going to rent it out. I'm just like what is really going on?!!
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source https://www.reddit.com/r/RealEstate/comments/1wj9njx/are_the_sellers_delusional_the_listing_agents_or/
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