What!/! Homes are still selling at $210,200 overlist!!

Initially I called this post “Exclamation of true market condition”

now it’s called “Things aren’t always what they seem to be

 

FIRST POSTING

$210,200 OVER asking and my client STILL didn’t get the property!!! Market slow down?!? I think not people.

See Generic Post Below

SECOND POST

List price was $599,800. My opinion of value was $755,000 so it really sold at about $55k over market value.

Now, AFTER LOOKING at MLS Listing, Uncle Bob says —

View details for these Property Matches.
 -NB- the Listing agent’s Office is in Bradford ON, 
i.e. much closer to Barrie than North York, nevermind prime Leslieville
While the listing was presented well and the pix were Ok and the “hold offers until process”was fine, is it possible that:
– a salesperson whose office is in Barrie might be a tad “out of touch w the market” ?;
and/or
– a tad more concerned with a promptly arranged sale for a (distant from trading area) client who desired a quick closing (60 days asked and Jan 31/14 received)? 
and/or
– not too concerned “what happens next” in the local market.
Some brasher (jealous, sour grapes) Realtors(tm) might say that enlisting the aid/assistance of a local agent (on a Reverse Referral basis ie pay 10%-25% to local, while doing all the work yourself ) might have been wise.
In my view,  this property should have been at $699,800 OR $729,000 or $759,000 and the same result would have been achieved .
The observation here (similarly to the famously-ridiculous $800-900K Home sale overlist in the Beach, ‘orchestrated’ by a registrant from a Bloor West/High Park office ) is the not-quite-up-to-speed knowledge and therefore less-than-absolutely-accurate list-price recommendations of a Realtor(tm) operating on the outer limits of their trading area/prime expertise.
IN A MORE GENERIC sense and PRIOR to knowing ask/sold prices and prior to looking at listing

Reply from Uncle Bob (unsolicited)

Nevermind $$ relative to asking price – think %’s. Many homes (esp the holding offers for a few days) are strategically-priced ie PURPOSELY 5-10% under the “bare-minimum expectation of owner AND L.Agent. Notwithstanding that comment $141K or $160K on ~$750K list price home is STILL a huge % over-list.

A second home sale example from same original poster introduced the details on another recent property with an even more egregious list -to-sale ratio (list $599,800, sold $810,000)

As mentioned before (Location. Location location) has been superseded by Location, Demographics & Time (CCIM course) to which I add the expand-er “the thoughtful buyer’s anticipation of gentrification, transit improvements, uniqueness and irreplaceability of certain homes/bldgs  (i.e. unique homes are cheap at any price, nevermind an extra 10% from “accurate, current day value)” AND the silent and deadly price-enhancer –  inflation.

Yes, the central banks are devaluing currencies (beggar thy neighbour it’s called) and tangible assets are the only things that hold value in inflationary periods (and you can LIVE in real estate – or rent it for current income). This flight to quality AND actual tangible assets (real property partic. as per abovementioned) once the impact of the last several years of speculation in/with (borrowed) Central Bank gov’t Gold reserves “ReHypothecation”http://wp.me/p46Qi5-1J

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