I just saw something interesting happen in local real estate sales. Just this AM, there was a closing for a piece of vacant land in the VOC... but that's not the unusual part. This lot is in a newly developed subdivision that was a great bargain in 03-04 when originally marketed by the developer. Lots generally sold in the 170k range... and were soon after selling in the 200's, then 250k range, then over 300k in a matter of a few years. Well, as you probably know, vacant land has been relatively stagnant and prices have come down. I sold one of these lots a few months back for a GREAT price of 210k. That reflected the sellers desire to offload this piece of vacant land. Well... today a similar lot was on the market for 175k... and just closed for a hair over 157k. That means that the seller is losing 35k or so... plus his holding costs. This shows the importance of selling at the right time... In a declining market like this, prices are falling. As a seller it's better to offer your home at a perceived "low price" now to get some buyer activity and to sell your lot for a fair price. There are chances that if you price it too high, it wont sell and the market could further decline and you'll end up having to sell at an even lower price just to meet the market.
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