Zillow found that home sellers who bought their home after 2007’s housing bubble burst have a tendency to overprice their home by 14.1 percent more than those who bought a home during or before the bubble, said Agent Genius.
The article states that home sellers who bought their property prior to the bubble list their homes for sale 11.6 percent over market value, and those who bought during the bubble price 9.3 percent over market value. “The bottom line here is that listings are still roughly 10 percent or over market value when listed, regardless of home values struggling across the nation and sales remaining anemic,” said Agent Genius.
“Post-bubble buyers seem to believe they escaped the worst of the housing recession, as evidenced by how they price their homes today. But 2006 was just the beginning of the housing recession, and it is continuing in earnest to this day. That means that even people who bought after the bubble burst need to break out the pencil and paper and do serious research into what has happened in their market since they first bought their home, whether it was four years ago or six months ago,” said Zillow Chief Economist, Dr. Stan Humphries to Agent Genius.
Zillow then attempted to shed light on what this implies for future home sellers and found that 17 percent of future sellers who purchased their home before the bubble said “purchase price would be the primary factor in pricing their home to sell in the next four years” and only four percent of these sellers planned to use the original purchase price as the listing price.
“Realtors should understand the three types of home sellers as studied by Zillow- those that bought before, during and after the bubble, and take the year of purchase into account as an indicator of seller mentality,” said the article.