Posted by: Dean Foust on November 06, 2007
A little more than a year ago I posted an entry picking up on a Washington Post article noting that the president of the National Association of Realtors, Thomas Stevens, had been unable to sell his own house. The kicker was that Stevens, by his own admission, said that his agent had been advising him to drop the price and he didn’t — and the house didn’t sell. His comments at the time:
“Who knew last September how long this down trend was going to continue, … You need to adjust the price… . But I didn’t do that. And my house is still on the market.”
“What I should have done, was listened to my agent and cut the price by $50,000 to $100,000 early on, and the property would have sold last October. … I should have listed it a month earlier…”
Assume he’s sold his house by now, right? When you assume, you…
Fourteen months later, and his house is still on the market, according to the Paper Economy blog. Of course, by now he’s had to drop his price by $165,000, but the window may have closed. A lot of buyers are spooked by the downturn in the Washington, D.C. region (to see the trend, check out one of my favorite blogs, Northern Virginia Housing Bubble, which chronicles the trend in asking prices in the NoVa area), and are choosing to wait it out. His house has now been on the market for more than 700 days (!). C’mon, cut the price!! Cut the price!! The market is telling you something!! Cut!! Cut!! Keep cutting ‘til it sells!! Isn’t that was Realtors tell us?
A tip of the cap to the folks at the DirectCurrent blog for catching this.
BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.