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Why Houses Still So Overpriced?

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I checked their market worth and compared it to seller's asking price. Most houses are way overpriced... I'd figure I can get a decent house in Union county but no... everyone wants almost 200k for something that worth no more than 160k...

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Posted · Report post

Because you might burn it down, obviously.

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gubmint just re-valuated my matthews house 15k more than I paid for it in 2009 and even more overpriced for what it is worth. Even though you're looking in union co, the meck county re-valuation may be playing a role.
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[quote name='Jase' timestamp='1334286273' post='1728109']
gubmint just re-valuated my matthews house 15k more than I paid for it in 2009 and even more overpriced for what it is worth. Even though you're looking in union co, the meck county re-valuation may be playing a role.
[/quote]

Taxes and People not wanting to take loses on houses.

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[quote name='Squirrel' timestamp='1334286601' post='1728123']
Taxes and People not wanting to take loses on houses.
[/quote]

This, people are still holding out, hoping not to take a loss.

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I see a house I like in Union county. It's for sale for $175k, valued at $170k and assessor estimated at $200k... I will offer this dude $160k on Monday. He can take it or leave it. Major banks will start another round of foreclosures after election. I don't mind waiting for few months.

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Asking price and selling price are two different things. I stole the place I just bought in Jan, The owner now lives in CA and had been trying to sell it for 3 years. He had to bring $35,000 to the closing. Just have to look for the right deal.

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[quote name='Jase' timestamp='1334286273' post='1728109']
gubmint just re-valuated my matthews house 15k more than I paid for it in 2009 and even more overpriced for what it is worth. Even though you're looking in union co, the meck county re-valuation may be playing a role.
[/quote]

Mine doubled in it's assessed value. Quityerbitching. The shortage on my mortgage each month is now almost 400 bucks more. Yay reassessment!

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It's actually because the banks are artifically keeping the prices high. Even though the banks are hold and continue to seize record numbers of properties they are only selling them off in small waves, rather than massive dumps. There has actually been this weird phenomenon of banks over inflating the value of homes that they hold the loans on so as to prevent various morgage restructuring for the owners.

[quote]Banks might be indulging a bad habit that could be worsening the foreclosure crisis, according to recent research from economists at the Federal Reserve Bank of Cleveland.

The economists, Thomas Fitzpatrick and Stephan Whitaker, did some analysis of the Ohio real estate market and found a disquieting trend. Banks seem to be over-valuing many of the homes they foreclose on, making it less likely that homeowners can get a loan modification and more likely that they'll end up losing their property.

It is not clear how or why banks are getting an inflated idea of the value of so many properties - especially since foreclosed homes tend to drag down real estate prices for the whole neighborhood - but the trend seems to be real. Fitzpatrick and Whitaker note that at foreclosed-home auctions in the Cleveland area, banks routinely sell their properties for much less than what they paid to buy them from the sheriff, meaning banks are high-balling their estimates of what those homes are worth.

If they were not doing that, the economists write, then maybe they'd be more willing to extend loan modifications to Ohio homeowners who then wouldn't have to give up their houses.

This is not the first evidence that banks have made the foreclosure crisis more pronounced. The widespread practice of robo-signing - banks moving forward with foreclosures based on forged or unread paperwork - has significantly impeded the housing recovery. And additional signs have shown wrongful foreclosures continue to be a problem across the nation.

[/quote]

[url="http://www.presstv.com/usdetail/232055.html"]http://www.presstv.com/usdetail/232055.html[/url]

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[quote name='Floppin' timestamp='1334325078' post='1728553']
It's actually because the banks are artifically keeping the prices high. Even though the banks are hold and continue to seize record numbers of properties they are only selling them off in small waves, rather than massive dumps. There has actually been this weird phenomenon of banks over inflating the value of homes that they hold the loans on so as to prevent various morgage restructuring for the owners.



[url="http://www.presstv.com/usdetail/232055.html"]http://www.presstv.c...ail/232055.html[/url]
[/quote]

I'm not surprised at all. Makes sense. It fits the bank's MO.

Banks screwed the people.
We bail them out.
Banks continue to screw the people.

Glad I didn't go through a bank for this latest home purchase. I am one of the few people in the world banks don't make money on. Only thing I pay is $24/year for check imaging on my checking account (personal reason for this). But with the paper statements I receive, mailed ads for credit card offers (I pay 0% interest on credit cards), in the long run, they are paying to keep me as a customer and to have contact with me.

I just wish I could control how much insurance companies and the oil industry make off of me like this.

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I love how everyone who reads the paper becomes a real estate professional.


The market is better, rates are the lowest they have ever been, money is fairly easy to get, down payments are very small right now.

It's not that hard to understand.

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[quote name='thefuzz' timestamp='1334329500' post='1728663']
I love how everyone who reads the paper becomes a real estate professional.


The market is better, rates are the lowest they have ever been, money is fairly easy to get, down payments are very small right now.

It's not that hard to understand.
[/quote]

Which bank are you a mortgage broker for again?
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