All Forum Posts by: Robert Fisher

My real estate agent just pulled some comps in the past two years, there are 7 sales; all sold for below asking price (I'm buying in a "2nd home" area, so not a hot RE market like SF or NY).   I did some compilation on Excel, these are the discounts from the asking price.  And I assume it's the FINAL asking price, which might have been reduced from a higher original asking price.  So it seems typical in that market that people ask for more but settle for less.  I just have not seen a 50% differential. 

One thing I noticed about zestimate, is every 3-5 days the number drops by about 0.15%.  That points to a "the longer a property sits unsold, the more likely price is too high (therefore unsold)".  I think there is some market insight to that.  Not saying this positive-proves zestimate, just one little thing I noticed and seems to make sense.  What are said above about the flaws of zestimate also make sense.

I am looking at a property where the zestimate is almost 50% of the asking price (517K vs. 995K).  I understand zestimate is perhaps the result of some robotic formula calculation; but it has to be based on something right?  If I make an offer based on the zestimate price (meaning close to that price), will the seller/selling agent get offended?  I really would love to get it at 517K..... =)

Which I find kind of strange.  Certain things may need be factored into the price.

I'm buying in a rural area known to be a "2nd home area".  The pricing and market activities (or lack of) can be very drastic.  Overall people tend to list a high price then come down.  On Zillow I see houses that sit in the market for 1+, 2, or even 3 years and up, and the price reduction can be as much as 30%, with some Zestimate @ 50% of asking price.

One agent told me this is the result of the 100%-discretionary nature of 2nd home area.  Prices will go through boom/bust cycles.

Given all these, is there a strategy for buying this type of properties?

In Sonoma County California, ocean-front properties are asking form $500+ per square-foot.  Is that too much?  It is indeed a very beautiful stretch of ocean.  I don't mind buying expensive goods if the value is there; like gold reasonably (or unreasonably) costs more than copper.  How do I gauge what Sonoma ocean-front properties are worth?

3 adjacent properties in NYC are being sold together for $9 mil.  What commission is reasonable?  I would think the larger the amount, the percentage maybe be lower....?  Broker is proposing 4.5%.

Thank you both for a very scientific perspective and a very philosophical perspective.  I think I will go ahead and purchase my coastal property now, and try to generate income out of it before I retire; gonna be tricky managing that from afar.

I am thinking about buying a second home.  I will retire in maybe 15-20 years, and would like to live in the Sonoma Coast part time if not full time.  So I need a property there.  

I'm thinking about buying it now; hopefully the property tax will be lower than when I buy it in 15-20 years.  But the region's price appreciation seems to lag behind SF Bay area.  I'm in a real dilemma.  Should I buy at the coastal area now, or should I buy in SF Bay area now, then in 15 years switch over to coastal area?  Can you give me some pros and cons?

 Oops sent by accident....

I noticed some properties at the coastal area, whose prices have not changed in 10 years; a few even in 15 years.  Meaning it was sold for X dollars back then, and today it's still being sold for about the same amount.  So I am wondering about the price pattern for those outskirt areas.