Monday, October 6, 2008

CB ASKS SELLERS TO CUT 10% OFF PRICE


Coldwell Banker is asking it's 25,000 sellers who listed properties with the brokerage to cut 10% off their listing prices.

IMO, this should have been done 2 years ago...but it's a good start.

5 comments:

Anonymous said...

Man it's kind of hard to not believe this is the bottom and start going LONG from here haha!

lars said...

good call john... these guys are really behind the curve... however, up until recently, most agents viewed this as "buying on the dip"... I've argued with these for more than a year now... problem is now I want more than 10% off and they are still coming around to a marginal reduction in prices... 10% sounds suspiciously like a nationwide best scenario Case Schiller number... and with money tight and jumbo's non-existent 10% won't help anyone other than the signage company who will reprint the yard sign "NEW PRICE"... but still no sale.

John C. Lee said...

not a permanent bottom. Not even close, just a 'bounce' is what I expect. We hit that puke out level I was looking for.

Lars - people are now going to think, "hey, if they're lowering 10%, shizz I could prob get more than that!!".

With the unavailability of credit, buyers wouldn't even be able to buy at the 'new reduced' prices

lars said...

the property market doesn't make "V" shaped bottoms that we are so used to seeing in the capital markets.... this is why most stock investors/traders don't understand the real estate market and continue to believe that it will "bounce" .... the real estate market makes an "L" shaped "recovery" this means that a "recovery" is simply when prices stop going down and move sideways.....

John C. Lee said...

thats correct. We have 4 stages in a real estate cycle and I have never actually seen V bottoms historically. Nor will these people ever see one.

If houses can be bought and sold on an exchange, they might have a slight chance lol