Saturday, February 16, 2008

Price to Sell

Things only got completely crazy in Philadelphia for a little while, but even here anecdotally for sale signs seem to sit on houses for a long time...

Kegley, owner of Moreno Valley-based National Realty Group, said he's finding a fair amount of pre-approved homebuyers. It's finding sellers willing to lower their prices that's more challenging.

"(Sellers) ask me what it would take to sell in 30 days, and when I tell them, they say, `Come on, be realistic,"' Kegley said. "They keep reducing the price, but they're always too late."

A real estate veteran of more than 20 years, he said the current housing meltdown "has a different twist to it" than prior slumps.

"Last time we had some equity on properties," he said. "This time there's just no equity. The prices are much lower than what's owed on the properties."

To the extent that people are underwater you can understand. You're telling them to write a big check for the privilege of leaving their house behind.