Thursday, September 28, 2006

Too Many Signs: Bad for Business?

From the Auburn Journal:

Balance sought for real estate signs as houses for sale grow

Real estate signs are reflecting a recent market that has sellers chasing buyers. The number of houses on the market in Placer County, excluding the Tahoe area, in August had increased to 3,101 from 1,684 the same month a year earlier...

County Assistant Planning Director Melanie Heckel said real estate brokers have been among the people expressing concerns about the number of signs. They felt that it created the impression that a neighborhood was undesirable and the presence of too many was bad for business, she said.

Fred Eichenhofer, broker-owner of Sierra Pacific Real Estate, said real estate signs are a sign of the times. "Things were moving relatively rapidly and signs were up for a short time," Eichehofer said. "With properties on the market longer, it's more of an issue."

7 comments:

Max said...

Another byproduct of the crash. I’ve seen similar articles from around the country.

What better way to limit competition that to disallow advertising. FSBOs, they’re coming for you!

Anonymous said...

Interesting article in today's LAT about the proliferation of no-doc mortgages or "liar's loans" and how they might contribute to the downturn: More Home Buyers Stretch Truth, Budgets to Get Loans (http://www.latimes.com/business/la-fi-loanfraud29sep29,1,3418328.story?coll=la-headlines-business).

tom stone said...

in elk grove and similar areas,maybe they could put up "not for sale" signs to distinguish the few homes people actually live in,problem solved!

Anonymous said...

How about a sign that says "NOT A POT HOUSE"

norcal ray said...

"in elk grove and similar areas,maybe they could put up "not for sale" signs to distinguish the few homes people actually live in,problem solved!"

Funny. Kind of like giving the customers "Not for sale signs" at a used car lot to put on their cars.

JR said...

Tom Stone said:
"...maybe they could put up "not for sale" signs to distinguish the few homes people actually live in..."

Tom, this is happening for real!! In Lincoln, JTS sold houses to so many specuvestors in the Estates at Lincoln Crossing, that they had to put signs in front of the sold homes saying "Occupied, Do Not Disturb". The homes are all STILL VACANT, but JTS needs to distinguish the sold homes to the greater fools they have already made into FB's, from the new crop of fools they are bringing in on this next round. Since everything is vacant, there is now way to tell what is "sold", except for the sign.

138 homes. 85 sold mostly to Flippers, and about 15 are rented after 6 months. The rest are STILL VACANT just sitting. It is like the whole place is a haunted movie set for "desperate housewives trying to flip homes".

To make matters even weirder, JTS will not let any closed buyers put "For Sale" signs in the yard. So JTS gets to litter the subdivision with flags, balloons, sandwich boards and baby blimps on every house, while all the FB's get is a "for sale sign in the garage window." It is hilariously sad and pathetic, for all these people stuck with JTS product they can not dump. And of course JTS is undercutting all the investors by $200,000 now, so they can dump the 50 unsold homes, further hurting the first crop of FB's. Strangely, even with $200,000 off, it appears all the sales are cancelling withing a few days, and the "sold" signs come down, and "available" goes back up.
In the newspaper yesterday, JTS ran an add, showing how they reduced their prices $50,000 a month for the last 4 months. Now, they say it is your last chance for $200,000 off, as they are raising prices next month. SURE, if you can not sell it, raise the price. NOT A CHANCE...these houses are overpriced at $300,000 off, and will got to auction by January. It is a joke.

Anonymous said...

Yes, JTS needs to learn the new paradigm....they don't set the price anymore....the buyer sets the price. It will only sell for what someone is willing to pay. And it is pretty clear that JTS may just find out what that price is in January, if they have to hold an auction...just like all the other F'd Builders who saw specuvestors cancel escrows.....so the many F'd Borrowers are soon to be joined by the F'd Builders.....how ironic. F'd B's for all....