High hopes, falling prices — Homeowners cling to false optimism about own home

Published: Sunday, Nov. 30, 2008 12:27 a.m. MST
 |  E-MAIL | PRINT | FONT + - 
The housing market may have bust, but many homeowners are still living in a bubble.

Despite dismal housing headlines and reports showing falling prices nationwide, owners in some once-hot areas still believe their home is gaining value or at least holding its own. And by hanging onto too-high expectations, sellers are unwittingly keeping the market from finding a bottom.

Real estate professionals across the country are reporting difficulty convincing sellers of the true market value of their homes.

"It's like pulling teeth in this market," said Twyla Rist of Reece & Nichols Realtors in Kansas City, where prices are off between 7 percent and 15 percent. "Even with everything being said, you still have people that think my house is better than everybody else's."

A recent Coldwell Banker report showed that more than three-quarters of its real estate agents surveyed said most sellers have unrealistic initial listing prices for their homes.

Likewise, an unscientific study released this month by real estate Web site Zillow.com found that half of homeowners polled think their home's price has increased or stayed the same in the past year.

Story continues below
"We expected people to get a little more in touch with reality, especially over the summer, because you couldn't turn on the TV or read the newspapers without seeing that home prices are falling," said Amy Bohutinsky, a spokeswoman for Zillow.com. "It was very surprising to see this kind of disconnect."

In fact, the median sales price of an existing home dropped 9 percent to $191,600 in September from a year ago, according to the National Association of Realtors.

It took John Cicero and his wife an appraisal, some convincing by their real estate agent and some hard-to-swallow facts to get them to lower the $525,000 listing price on their five-bedroom home in Valrico, Fla. They closed two weeks ago for about $380,000.

"We didn't really understand the severity of the market," Cicero said. "We lost close to $100,000 in equity, so we were walking away from real money."

They built the stucco home four years ago for $380,000 and poured more than $80,000 into it, putting in hardwood floors, granite countertops, ceiling fans, blinds, drapes and a built-in surround-sound stereo system. They also expanded the deck by the pool, turning it into what Cicero called an "executive entertainment area."

"You think you have this wonderful home and people will want to buy it," he said, "but you're wrong."

Recent comments

Real estate agents need to lower their commissions. To receive...

Susan | Dec. 2, 2008 at 8:57 a.m.

If the value of my home has decreased, why haven't my property taxes?

GTO | Nov. 30, 2008 at 7:42 p.m.

The 1.6% drop is only for the fools to believe. Those in the know of...

re Let's See | Nov. 30, 2008 at 6:31 p.m.

Image

Real estate professionals across the United States are reporting difficulty convincing sellers of the true market value of their homes.

previousnext

Latest comments

This is the bowl game for both schools this year - I guess we know how this...

SLCC athletics winning with locals

Holmstead was easily one of the top 3 female players (and arguably THE best)...

NBA roundup: Celts win in OT

Any loss for the Knicks is a great thing this year since the Jazz will be...

Bronco, Kyle rubber match

What's the argument?? Where was Utah in those polls? The only argument the...

Crimes up against gays, religion

"Us liberals aren't into moral relativism." Ummm; It is my expereince...

Glenn Beck to enter politics?

I am in full support of Glen Beck's decision to enter politics. I welcome...

It is funny how those who are critics of the Church feel we as Church members...

Reagan much-beloved in Utah

I'm sorry, but I don't buy the logic you posit about Utah being liberal. No...

It’s absolutely embarrassing to read the vitriolic and malicious...

UTOPIA seeking stimulus funding

UTOPIA is not a private corporation, it is an interlocal entity owned and...

Advertisements