What's Up With the Price Point

From Dutch:
FYI.... Listing agents are dumb. They are a big reason we're in this mess. All they ever talk about is the comps. Comparables, although effective in a bull market, obviously aren't the most effective way to price a home in this bear market. Personally, I don't care that the house on the corner sold for $375,000 in 2006. If you wanted $375,000 you should have sold in 2006. THIS IS 2009. The most effective pricing method is pricing the home where the most people can qualify for financing.

Currently we are a society that carries large amounts of debt. Current buyers don't have the lending options buyers had from 2001-2007, even though they too were carrying the debt. During that time, many buyers were taking out a loan for the down payment as well as the principal in order to get a more expensive home. This risk was justified in their minds because they felt that their home was going to appreciate and make them more money (greed). In this market, the main type of loan getting approved is the FHA loan which requires little down and is capped at $350,000. If people and agents really want to sell their home; How come they don't price them within the FHA requirements ? The answer, STUPIDITY. Homes won't sell til prices reflect what is able to be financed. BTW, Anne and I have the ability to put 20% down and don't want to pay more than someone who doesn't.