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When home owners take the lead in the List Price, or listing agents do not “educate” the seller they are waiting to take a lower price.

I have to giggle when I see listings like this. (XXXXX W Goldenrod Drive)

All sales are NOT distress.

· Sold 3/15/2010 VA for 195,000 (Down from $199,900)

· Listed 7 months later for $222,500 (14% higher in a declining market? Yeah right!)

· It expires after 127 days.

· Relisted with new agent for $199,900 in March-2011 and sells for 23 days for $189,000.

Simple math.

$189,000 / $195,000 = 0.969 = 97%.

The home dropped 3% in 1 year (makes perfect sense!), and you can guess the VA sale in March-2010 had a few points in closing cost.

Of course this does not apply to all homes, esp FLIPS, remodels and homes like that. However, the market has been moving DOWNWARDS in the last 12 months, not upwards by 14%!