Survey: Buyers, sellers still disagree on home prices

A sharp disconnect still exists between homeowners and sellers over the real value of home prices, according to the latest survey by HomeGain.com Inc.
MAR 09, 2009
By  Bloomberg
A sharp disconnect still exists between homeowners and sellers over the real value of home prices, according to the latest survey by HomeGain.com Inc. of Emeryville, Calif. The study found 63% of homeowners said their homes should be listed at higher prices than what their real estate agents recommend, while 59% of buyers believed homes are still too expensive. Indeed, the survey found 45% of homeowners believed prices should be 10% to 20% higher than their agents recommended, while 14% believed prices should be 20% to 30% higher. Four percent said their homes should be priced more than 30% higher and only 14% believed the agent priced the property fairly. Among homebuyers, 21% said homes are overpriced by up to 10%, while 32% said homes are overvalued by 10% to 20%. Six percent said homes are more than 21% overpriced and only 18% think homes are priced fairly. Although 90% of those surveyed said they believed home prices have fallen in the past year, most don’t think it should apply to their homes. “Homeowners know that prices have fallen, but that somehow doesn’t apply to them because they have ‘upgraded vinyl’ or some such nonsense,” Pamela Frey-Primiani of Keller Williams Realty in Sicklerville, N.J., said in a statement. “Sellers have got to be realistic in their expectations. An overpriced home in these times does nothing — no showings, no offers, just whining from sellers that it’s all someone else’s fault that the home hasn’t sold. Sellers need to get real.” The survey showed 53% of respondents thought home prices will fall further in the next six months, 11% said they’ll increase, and 36% predicted they will remain the same. Most respondents said they believed the Obama stimulus package will not spur a recovery in the housing sector: Fifty-eight percent said the stimulus package will have no impact, or will cause prices to fall further. About 38% thought the package will stabilize prices, and just 4% believed it will cause values to increase.

Latest News

Maryland bars advisor over charging excessive fees to clients
Maryland bars advisor over charging excessive fees to clients

Blue Anchor Capital Management and Pickett also purchased “highly aggressive and volatile” securities, according to the order.

Wave of SEC appointments signals regulatory shift with implications for financial advisors
Wave of SEC appointments signals regulatory shift with implications for financial advisors

Reshuffle provides strong indication of where the regulator's priorities now lie.

US insurers want to take a larger slice of the retirement market through the RIA channel
US insurers want to take a larger slice of the retirement market through the RIA channel

Goldman Sachs Asset Management report reveals sharpened focus on annuities.

Why DA Davidson's wealth vice chairman still follows his dad's investment advice
Why DA Davidson's wealth vice chairman still follows his dad's investment advice

Ahead of Father's Day, InvestmentNews speaks with Andrew Crowell.

401(k) participants seek advice, but few turn to financial advisors
401(k) participants seek advice, but few turn to financial advisors

Cerulli research finds nearly two-thirds of active retirement plan participants are unadvised, opening a potential engagement opportunity.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today’s choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave