It's no secret that the market has declined in our area. It's down from the over inflated prices at the peak of the market in 2005-2006. And, often that can be a very large pill to swallow for many homeowners. Many had their life savings invested in their homes and they have watched the value plummet over a period of years. We have seen a bit of stabilization in the market. But, a house is only worth what a ready, willing and able buyer is willing to pay for it, and not a penny more.
And, today buyers can be tough.
Education is key in dealing with owners that are considering selling their home. And, sometimes it takes longer to convince sellers that they are holding onto to yesterday's prices. I understand their frustration. But, a house has to appraise at today's value, based on comparable sales within the area. It it doesn't appraise, 98% of the time it's not going to closing. The lender will refuse to do the mortgage and buyers and sellers will not be exchanging keys.
So, as a Realtor, going out on listing appointments, it's common to hear the justifications as to why an owner feels that their house is worth more than similar homes in the area.
Some people play the lottery. Some gamble in Vegas. Some lose money in the stock market. And, some may blow money on frivilous purchases, but people don't want to lose money on the sale of their home. It's human nature. And, you can't blame them.
We hear a seller's views on the sales prices of homes in their area:
Mine is bigger and newer than the one down the street.
I have top of the line appliances.
Oh, they had that big dog that barked all the time and scared people, so they took a huge loss.
We put so much more money into ours than they did.
That house down the street was a mess.
Do you know how much this carpeting cost us?
But, my house faces east, and that one faced north. And, we all know that east is better for the ocean breezes..
They never did anything to that house.
But, I paid extra for my window treatments.
Oh, they were getting a divorce, so they gave their house away.
But, I have a nicer fireplace than they did.
But, I have 20 year paint on my house.
But, I just finished putting $10,000 in landscaping out front.
That house was a hideous color.
Theirs sold so low because they were both smokers.
That house in the front of the neighborhood, and everyone drives past it. That's why it sold low.
Oh, they never kept their grass and bushes trimmed.
The neighbor has had his on the market for 9 months at $250,000. I want to get what he's getting.
Oh boy, if I were a seller in this market, I can imagine how many of these things I might be saying. It's tough. We all want the most out of our property that we can get.
Realtors don't create the market. We can only interpret it.
But, in today's market don't get caught chasing the market. A seller will get less money on a property if he starts too high on his list price. Some think 'price high, they can always make an offer.' Well, unfortunately, they don't always make an offer.
Homes priced realistically are more likely to get an offer close to market value than homes priced high. If a house gets stale on the market after several months, nobody wants it and then buyers wonder what's wrong with it. And believe me, smart buyers are doing their research today and they know exactly how long a house has been sitting on the market. The price later has to be slashed to get it to market value or below and many times the sellers take a beating on the price.
What does a large retailer do when merchandise isn't selling? They eventually slash the price to get it off the shelves.
It's not any different with real estate.
Sandy Shores Realtor, Melbourne FL Real Estate
Brevard County Real Estate and Investing
I specialize in Residential, Investment and Relocations.
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