On my next listing appointment I'm going to wear a suit of armor!
A couple of days ago I went to meet with a seller about marketing her home for sale. She had a beautiful 3 bedroom, 2 bath, well appointed home in a desirable neighborhood.
I always like to take a little time to get to know the owners. And, I ask them to take me through the house and tell me as much as they can about it. This way I can get a feel for the property.
The owner seemed a bit hurried, as she showed me the top of the line amenities she had added to her lovely home.
We sat down to discuss my marketing plan, to sell her property, when she chimed in with, "Well, how much? How much can I get for my house?"
I pushed the marketing materials aside and picked up the market analysis I had performed on the property. In today's market, realistically the home was worth approximately $189,000.
When I gave her that figure, I was about to duck, because she looked like she was going to pick up a book and throw it at me!
'Back in 2005, I had a neighbor down the street offer me $350,000 for this house!' she boomed. 'You can't tell me that it's only worth $189,000, today!'
Unfortunately, I don't create the market, I can only interpret it.
Sandy Shores REALTOR®, Melbourne/Palm Bay FL Real Estate
Brevard County, Florida's Space Coast Real Estate & Investing
I specialize in Residential, Investment & Relocations.
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Not to mention, her grass was greener than the neighbors! That is the biggest problem we face today, educating people about today's market values!
She should have taken that offer like so many of us wish we had.
Sandy she will learn soon enough that this is not 2005....Good luck with that one.
Sandy - this is an amazing disconnect that so many of us seem to have sellers. It's easy to blame the media, but when I present the comps - in black and white - the denial of reality often continues as a seller nit picks each comp as to how hers is superior. The best thing so far is the appraisal, explaining that these are the houses that an appraiser will look at and that the "law of pregression" will not allow 1 house in a neighborhood to go for too much more than the others, even with so many bells and whistles the seller clamors about.
Robert, Is is definitely a hurdle that we must deal with - today's market value. We must remind the public not to shoot the messenger.
Chad, I know, right? If only we had shined up that crystal ball back in 2005. We'd all be sitting fat and pretty, wouldn't we?
Dennis, Thanks, time will tell how this one will wind up playing out!
Janice, It is a difficult bullet to bite...sellers admitting that their homes are not worth, today, what they were 5 years ago. Many owners are still hanging onto to that hope that is long gone, now.
Sandy, Isn't that sad that some people haven't faced reality about home prices in the last few years? She couldn't have missed it...
Hi Sandy ~ A good number of CMA appointments have been brutal over the last year and a half or so. Sometimes it reminds me of how restaurant customers blame their waitress if they don't like the food - which she didn't cook! I will say that all of the doom and gloom in the media has meant that a lot of homeowners have a much more rational view of the value of their property - thank goodness.
Liz
Wow! did you get the listing? LOL.. you need to keep taps on that house and then tell me what happened, now I am curious.
So where has this owner been the last few years the moon?
Sandy
The market sets the price for real estate.
Good luck and success.
Lou Ludwig
If she really thinks she can get that much for her house again, she should just wait it out. It isn't going to happen right now apparently. If you showed her the information you pulled, she should see that. But the proof is in the pudding, isn't it Sandy? You can't ring water from a turnip so either she waits for the market to swing back in the direction she wants or she deals with the way things are now. The hard part is that she will most likely believe you aren't telling her what she wants to hear the truth and so will shop around to find someone who will tell her what she wants to hear the truth.
Emcee
She doesn't understand the brutality of today's housing market. i guess you didn't get the listing.
Gee, I wonder if the neighbor would be willing to buy her home now for the same amount of money? It's hard to deal with reality but you did the right thing in giving her the truth.
Oh Sandy, It's tough for these sellers, I have seen that look. I'm glad she didn't throw something, because you're right we don't dictate the market.
Sandy, been there and done that! Probably all of us agents have. The big question now is, does she understand?
Sandy, unfortunately that is happening more and more! The worst part is that their taxes are not going down at the same pace!! Tragic!
You're so right Sandy! Like I told one couple, "I don't make the news - I only report it!"
Carole, Unfortunately I think that owners are holding onto the hope that prices are were they were at the peak of the market in 2005. It is hard to let go.
Elizabeth, You're right on with your example - please don't shoot the messenger. Really, I didn't do it. The media has played a part in letting owners know that prices have dropped.
Jesse, I think that often owners have to take sometime to digest the figures that we give them. I have been back in touch with her and will be meeting with her again next week.
Lou, The market does set the price, and there's nothing we can do about that.
Emcee, It's tough isn't it? And you're right - you can't squeeze blood out of a turnip. Our market increased by 180% from 2000 to 2005. And it has come back down substantially. We are back at early 2000 prices. People hope that their home is the one that is different and the one that will stand out. But, we have to remind sellers that the house has to appraise based on comparable sales in the area in the past 3 months.
Hi John, I think that sometimes it takes awhile for an owner to really understand the reality of the situation.
Irene, So true, the truth is so important in our industry. We're just shooting ourselves in the foot by not telling the truth. They have to know what to expect when their house goes on the market.
Mary, I agree, it is tough for these sellers. I read an article a couple of years ago that for more than 50% of homeowners the bulk of their wealth was in their homestead. Now, that's a really scary thought.
Gabe, I agree, most Realtors have been in the very same situation, numerous times. It's a hard pill to swallow. She needed some time to digest things, as I could tell she had begun to shut me out. But, I am meeting with her again on Monday.
Caren, Oh so true. Owners taxes, nor insurance are going down like their property values are. Great point. So that really makes it a tough situation.
Myrl, If we did make the news, we would try to make it good news for these sellers, wouldn't we?
Sandy, its the bitter truth that sellers are facing. I usually point out that it's also an opportunity for picking up something elsewhere for much less than they would have paid for a few years back.
Sandy,
I know just what you went through. Why do they think we make the market?
Ann Hayden in Wildwood, MO
Silvia, It is a bitter pill for many to try and swallow. That's true. Sell low, buy low. You can win on one end, can't you?
Ann, I think it's tough news for a seller to handle. don't you? I think we just happen to be in front of them, passing along news they don't want to hear.
Sandy,
Yes, I think you are right. They want us to tell them their house is worth the same as 3 to 5 years ago....
Ann Hayden in Wildwood, MO