General Real Estate @ 02 Mar 2008 10:03 pm by judyorr
There is certainly a much higher amount of inventory available this year compared to the same time last year. Last year was a record year for me. I was Agent of the Year in our very competitive office of over 100 heavy hitter agents that have joined Classic Realty Group from Re/Max, Realty Executives, Coldwell Banker, Century 21 and many other top franchise companies and other independent brokerages.
I hired a personal assistant to help me try to keep up with all of the paperwork I handle and do my mailings for me. I also partnered up with another long-time Coldwell Banker agent, Susan O’Halloran. Susan and I have formed a team and are listing properties with no problem. New listings continue coming up on market, but available buyers are not keeping up. It’s simply a true example of supply and demand.
I’m very busy showing properties, but it’s difficult getting buyers to commit. I have a contract waiting in line for a property being sold as a short sale and we’ve waited over a month now just to hear if we have a chance (among 3 other offers). I have one buyer who is still contemplating between two homes he likes almost equally.
These buyers did not act immediately in narrowing down their search or writing up an offer. I have shown more properties this year than normal, because buyers want to make sure they’re not missing anything.
Buyers Can Quickly Figure Out Which Homes Are Overpriced
My buyers and I can view three properties and know which one(s) is overpriced compared to the others. That home will be passed by. Why? Because there are enough homes priced right that a buyer doesn’t want to bother writing up a contract on those that aren’t.
And for the properties that are priced correctly, bids are coming in low. Buyers are testing each seller just to see how low they’ll go. It shouldn’t be taken personally, it’s just a business deal. Buyers are constantly reading the news about decreasing prices and they don’t want to overpay.
They also hear stories about people that bought a couple of years ago that now own homes that aren’t worth what they paid for them. This is scaring today’s home buyers. They don’t want to be in the same boat.
Some Sellers Don’t Seem to Understand
They’re still in a different market where buyers would bid on an overpriced property because there wasn’t as much to choose from. It is completely different today. I’ve seen buyers walk away from one property because they didn’t like the paint or some other easily fixed item. They can be pickier than ever because of the amount of homes on the market.
A Home Sitting On The Market For A Year Or More Is a Seller That Doesn’t Really Want or Need to Sell
I can’t believe some of the market times I’m seeing lately. Close to a year, more than a year, more than two years! I’m seeing sellers moving from one brokerage to the next, complaining about the inefficiencies of each of the myriad agents they’ve used. Sure, it’s very easy to blame an agent when a home doesn’t sell, even if the agent was adamant that the asking price was too high (but still took the listing).
So if you truly do want to sell, you need to accept the market we’re in right now. Not last year, not 2-3 years ago, not five years ago. That doesn’t matter to the fewer buyers out there. They’re out looking right now. You need to price your home based on today’s market values. A correctly priced home will sell in any market.
If you’d like to find out what your property is worth in today’s market give me a call at 708-536-8200. I stand by my motto - If I can’t sell your home, NOBODY can!
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