Is it an extreme buyer’s market?

This bit of info on realtor Jim Duncan's blog jumped out at us. In a post about properties that are selling in Charlottesville, he describes a 2,600-plus square foot, 6-bedroom, 4-bath house at 609 Lyons Avenue being listed for $630k in February. $50k was knocked off in March, then it went to another realtor who listed it for $489k. When they finally knocked the price down to $375k–- a reduction of $255k!!!–- the house sold in seven days.

"Price it right from the beginning," writes Duncan, citing lessons learned. "If the market says the price is high, reduce it. Beat the market down, don't chase it." Then he offers an even harder pill for cash-strapped sellers to swallow: "What you need to make to buy the next house is irrelevant to what your home is worth today." Ouch!

5 comments

The bubble is definitely popped. Have you seen the desperate selling frenzy on Monticello Avenue near Clark School?! Seems like the whole block is for sale. There is a weird little green cottage, just built, that is in for a rude awakening re: their half million price tag!!!!!!!!!!!!!!

I just noticed there's no central cooling. It was definitely a must-see.

I wonder if the market still bears $309,000 for tiny new houses at Tenth and Page?

Actually, the rumor is the Water Street lot had a buyer but Council didn't want to sell it to him because he had four chain store retail outlets planning to rent and that was taboo. Other developers are probably not interested in hosting the City Market.
I noticed this house was sold Being Sold "AS IS"." It was assessed at ~$490k according to the taxes, so $630k is definitely playing to the speculators' market. Outdated kitechens and baths don't sell fast either. They're considered fixer-uppers. Slling "As Is" may signal other costly problems such as plumbing and wiring or foundation or ...

Perhaps Realtor Duncan can help the CPC "Roll Back Prices" and finally sell the confounded Water Street lot. The city has already spent $100,000 to provide visions for the locus in quo.

Conversely, CPC Chairman Jim Berry wants to foster this cash cow - heck, $5+ an hour is conceivable! The hourly price of parking should, at least, match the price of a gallon of milk, right??

Since there have been no buyers since the lot went "on the market," in 2005, its offering price must be too high, as well.