सेलर's Point

I've received a couple of nice notes from sellers commenting on Real estate some news: as a way to protect ourselves from continued price stagnation or declines. It's clear there are perils aplenty for folks on the other side of the transaction, especially if they bought fairly recently.
One seller's story in particular stood out. "As a seller with a house on the market for over 400 days, we feel like we've done everything we can do to create this "deal" for buyers," he wrote. He and his wife have reduced the list price by over $70,000, and are now asking $50,000 less than they paid for the house. "We'll owe the bank money if and when we finally sell, and that is a pretty daunting feeling," he said. "We are praying to just not lose all of our savings."
This staggering scenario is not uncommon. We've seen several houses priced below what the seller paid for the property, often at the market's peak around 2005. I truly sympathize with sellers in this unfortunate position. At the same time, it's a sobering reminder of the risks. So we'll keep looking for a good deal, and hope sellers understand the reason we're so paranoid on price: those horror storie could someday be our own.