A seller’s lament: Not desperate, but anxious

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Good morning. Why don’t sellers lower their prices? The L.A. Times takes a look at the market today, and profiles a seller who hasn’t yet come to grips with the market.

Joe Lee is still holding out for $700,000 that he’s asking for his 2,600-square-foot, three-bedroom home in Lynwood. Lee has owned the home for 25 years, listed it for sale three months ago, and has reduced the price by $25,000 -- 3.5% from where he started. DataQuick stats, though, show prices per-square-foot have dropped 17% since mid-2006 in his zip code. ‘I wouldn’t say I’m desperate, but anxious, yes, I am feeling anxious,’ he said.

Other anecdotes and insights from a well-researched ‘state of the market’ story:

-- Don’t assume recent buyers can afford to sell at their original purchase price. Some need much more than that to break even. Story notes one Valley seller who bought for $890,000 in 2004 (100% financing), and later refinanced to take out $100,000. ‘They’ve got a situation where their break-even point is $1,150,000,’ said their agent, Peter LaMonica. ‘I just don’t know if it’s realistic for them to get that.’ The house is listed for $1.249 million.

-- LaMonica’s advice: If you’re thinking about selling in the next few years, sell now, and price your house lower than comps: ‘In this market, if we accidentally price your house too low, it could be a blessing,’ he said. ‘It’s a big mistake to wait 60 or 90 days before lowering the price. You’re going to get the greatest amount of exposure at the beginning of the listing.’

-- One more from the Valley: One seller put her 3-bedroom, one-bath home in Lake Balboa (Van Nuys) on the market for $525,000 in July. She’s since cut her price to $433,000. Only two prospective buyers have visited the house since October.

Commentary: Some of this may strike avid readers as old news. It’s not -- it’s not old news that agents are now telling the Sunday Los Angeles Times Real Estate section that, if you’re thinking about selling, now is the time to sell. That’s conventional bear market advice -- if prices are falling, sell. But it differs from advice we’ve seen often from real estate professionals recently, which is: If you don’t need to sell right now, don’t sell. That reflects optimism that the market will turn around, and prices will recover. The ‘sell now’ advice reflects fear that we’re in for a long period of weak prices.

Your thoughts? Comments? E-mail story tips to peter.viles@latimes.com.