Ultimately... None of that Matters!

Lisa and I recently had a wonderful Clemmons home go under contract. Without going into specifics, I'll just say that the contract price is significantly lower than what we expected. Even now, I can't quite grasp how it is selling for what it is. It's just defying the supposed data and market trends.

So why did the sellers take the offer?  When I first saw the offer, it was even hard for me, as the professional, to be objective. I thought "yeah, right"!  I had gotten word from another agent that an additional offer was coming, so we were confident we could wait for that one and it would be much better. The next day it came in, and it was within striking distance of the first one. What???  Then, I got a verbal offer from an out of area agent. I usually don't even listen to verbals but was thinking someone would have to throw us a bone. Guess what?  It was between the first two!

My point in saying all of this is that we can analyze, strategize, and categorize all we want, but BUYERS determine value. You must work with your Realtor to determine the most beneficial market value and aggressively market, but honestly, you are still at the mercy of the market.

So why do I use a Realtor if they aren't even right???". Mr. Consumer, I hear ya I hear ya... that's a different post, but how many unrepresented sellers do you know in this market getting three offers in one week??

Should I List During the Holidays?

It's a pretty predictable debate this time of year -- should I list my home now or wait for Spring? Great arguments can be made for both sides. The following are some reasons why you may decide now is the time to go for it!

-- Buyers that are looking now are serious. They have jobs, have their financing lined up, and need to buy now. Otherwise, they would wait til January to look when they had more time.
-- A lot of your competition will be bank owned. This means they will be cold, drab, vacant, and in less than broomswept condition. So, yours will automatically show better.
-- If you DO wait, you have done what the majority of folks have done, which means you will have even more competition than normal.

Call me to discuss the pros and cons -- different situations call for different strategies, and I can guide you through the decision making process.

The Today Show

I very rarely agree with real estate segments I see on TV, especially ones where "experts" give tips on increasing a home's value -- those experts are usually from either an extremely distressed market or one that is experiencing a wonderful bubble, so the tips ALWAYS need to be taken with a grain of salt. Unfortunately, many people see them as gospel!
Anyway, the Today Show had an excellent segment this morning. I made a point to watch it after the teaser basically so I could disagree with it, but this one was right on. It dealt with inexpensive and simple things you can do to enhance your home's value, and most of them were do-it-yourselfers. I really loved the analogy the guest expert gave when talking about shutters... she said that just as eyeliner enhances a beautiful set of eyes, shutters enhance the "eyes" of the home (the windows). So true! Some of the others were even simpler:

Fresh mulch
Paint the front door
Replace your mailbox
Power wash the driveway
Replace cabinet hardware in the kitchen
Clean off and polish the fridge
Replace light fixtures in high traffic areas
Replace toilet seats and bathroom mirrors
Bleach tile grout

Simple, right? SO many of these are easy, inexpensive, quick fixes that really polish your home. The guest expert made another great analogy. She pointed out that in an overly saturated market (like ours), these little touches make a big difference. Buyers see every dollar they will have to put into a house, and they offer $2 less for every $1. Sooooooo true...

Tate does it AGAIN

Allen Tate has offered us yet another powerful marketing tool... when you list with Tate and your agent uploads an online photo tour, your home is featured on YouTube! Nobody does more for you than Tate! To take advantage of this wonderful marketing tool, contact me TODAY

Buyer Expectations

This weekend I had several instances of buyers with unrealistic expectations (all were working with other agents, so I am not talking about any of my folks here!). I hear a lot "the market is down, so they can't expect that price." But guess what? A lot of sellers are educated and are priced for this market already. So, before you lowball just because "it's a down market," please have your agent do a market analysis. You may still choose to lowball, but at least you will recognize that many homes are already priced for THIS market and not for a booming one. If you need a market analysis done and don't have a Realtor, contact me asap!

Motivation

I read a great post on Steve Harney's blog about why we purchase certain homes. I hear so often from sellers "but I'm not going to make any profit." Fundamentally, though, do we choose a certain home because of its profit potential? Investors do, of course, when they are purchasing rental properties, but most of us choose a certain home for other reasons. Perhaps it is in the school district we desire for our children, or it has a unique layout that makes it possible for an in-law to visit frequently. Regardless, there are often factors at play that are more important than dollars and cents, and these are often motivating factors to which we can't assign a value. As your Realtor I am going to educate you about neighborhood values, but you have to decide if that is what really matters to you.

Is it a Deal or Not?

I'm writing today about buyer expectations... I showed property to a man this morning who is, unfortunately, pretty typical of a lot of buyers today. So as not to give away too much, I'll call him Jay. Jay is looking at a home priced (hypothetically) $100,000. From my market analysis, the home is worth $95,000-$100,000... so the list price is pretty dead on. Jay wants to offer $70,000 though, because it will need a roof in the next few years, the trim needs painting, the hardwoods need refinishing, etc. What I couldn't get Jay to understand was that the list price takes those things into account. In other words, if it had a brand new roof, refinished floors, no needed exterior maintenance, etc., it would be listed at a price much higher.

My point in writing about this is really just to emphasize that buyers need to be educated. Our market is definitely being affected right now by the nationwide housing crisis, but that doesn't mean you can buy every home out there for 80% of the list price! Many agents, particularly those with experience, are cautioning their sellers and advising them to price homes right for their condition, so $100,000 may be a good deal... even if that is the list price. The important thing to remember is that not all sellers are out to make a huge profit. This validates further the importance of having an agent (shameless plug!). With so many homes priced under market right now, it is hard to know what is a great investment and what isn't. Your local real estate agent can help you through this process.

Here we go!

Not that anyone cares, but I'm diving into the blogging world... after talking with my BIC for a while, I'm convinced this is where my industry is going. Might as well start with baby steps...

I get asked several times every day how our market is doing. That is SUCH a loaded question! Homes are selling, but they have to be positioned correctly and priced right... therein lies the catch. "Priced right" these days typically means sellers aren't getting what they'd like. A lot of sellers are having to cut their losses and be satisfied to simply get out from under the payment and responsibility of a home (rather than making a huge profit). For many the consolation is that they can make up for some of that on the buying side, but even that is only a possibility and not a probability. We are blessed here in the Triad -- we never had a crazy bubble. So, instead of being down 26% on home prices, we are only holding steady. Disappointing to some, but many others in America would love to be in our shoes!

This was my inaugural post... short and sweet, but bear with me since I am new to the blogging world. Now I'm off to spend some time with my 12 week old!