3 ms·

It bears repeating that there is no "what the house is worth" in the abstract. If you somehow know that other bidders will pay at most $X for it, then of course

It bears repeating that there is no "what the house is worth" in the abstract. If you somehow know that other bidders will pay at most $X for it, then of course you'd never bid $X * 1.2 -- you'd bid $(X+1). And if lots of people are (or can be made) emotionally attached to a house and pay an apparently unreasonable amount, that is what it's "worth."

vkou 4y ago
> It bears repeating that there is no "what the house is worth" in the abstract. No, but there is a 'what was selling price for similar homes in this area' price in nearly every specific. Listing prices are intentially set to be much lower than selling prices. Selling prices are the real prices, listing prices are fiction. People paying 20% over listing usually means that listing was 20% under selling. Boring! And not financially imprudent! People paying 20% over average selling in the area, for an equivalent home is what raises my eyebrows as financially imprudent.
- gtowey 4y ago
  > Listing prices are intentially set to be much lower than selling prices. Selling prices are the real prices, listing prices are fiction I feel like this is only true in irrational housing markets, or at least those that have a chronic undersupply of housing . In my local non-insane market I went through two different purchases where I successfully bid less than asking. That's gone since the pandemic though since everyone tried to move out of cities and work remote in my town.
  - s1artibartfast 4y ago
    It is basically true for sellers markets, because it gives more advantage to the seller. being a sellers market doesn't make it an irrational housing market. During a buyers market, prices usually approach the list or go under. This reflects the fact there is how much the house is worth to the seller, and how much it is worth to the buyer, and neither of these are the sale price.

vkou 4y ago

> It bears repeating that there is no "what the house is worth" in the abstract. No, but there is a 'what was selling price for similar homes in this area' price in nearly every specific. Listing prices are intentially set to be much lower than selling prices. Selling prices are the real prices, listing prices are fiction. People paying 20% over listing usually means that listing was 20% under selling. Boring! And not financially imprudent! People paying 20% over average selling in the area, for an equivalent home is what raises my eyebrows as financially imprudent.

gtowey 4y ago
> Listing prices are intentially set to be much lower than selling prices. Selling prices are the real prices, listing prices are fiction I feel like this is only true in irrational housing markets, or at least those that have a chronic undersupply of housing . In my local non-insane market I went through two different purchases where I successfully bid less than asking. That's gone since the pandemic though since everyone tried to move out of cities and work remote in my town.
- s1artibartfast 4y ago
  It is basically true for sellers markets, because it gives more advantage to the seller. being a sellers market doesn't make it an irrational housing market. During a buyers market, prices usually approach the list or go under. This reflects the fact there is how much the house is worth to the seller, and how much it is worth to the buyer, and neither of these are the sale price.