I think it's really important to explain to buyers that in spite of the market, most sellers are not giving their homes away.  If buyers have the expectation that offering a $300,000 seller $200,000 is going to get them a sale, they are sadly mistaken.  In the vast majority of cases, if a buyer thinks a seller is grossly overpriced, they are better off watching that listing and waiting for some price reductions.  But truthfully, if a seller was going to take $200,000 for their home, they wouldn't be pricing it at $300,000.  Common sense must prevail in this market, or a lot of people will end up very disappointed.  I am saying this after receiving just such an offer over the weekend on one of my listings.  Of course, my seller was not interested in even countering the offer.  The buyers' agent sounded a little frustrated at the rejection, probably because her buyer was wearing her down writing up unrealistic offers all over town.  As for buyers who get suckered into taking these foreclosure seminars, real estate investment seminars, etc. and pay serious money for these courses, they really need to put themselves in the sellers' shoes and logically think about whether someone is going to readily take an offer 33% below their asking price.  If the seller would, wouldn't their own agent offer to buy that property??!! 

I continue to feel very sorry for some sellers out there who are really in trouble with their houses being worth less now than what they paid for them a couple of years ago. I've been curious if the media is correct in saying that these poor homeowners didn't know what they were getting into when they signed those mortgage papers, so I've asked them straight up when they call me to help them out. And guess what? Almost all of them tell me that they blame themselves, because they knew they could get into trouble if the market turned! I have heard no stories from sellers here in Arlington Hts. IL telling me that they were oblivious to what they were getting into. They were simply banking on the market continuing to increase before their adjustables came due. So once again, the media has it wrong. Now the question is, how do we as Realtors help these people out? I think we owe it to ourselves and our profession to encourage these people to call their lenders, and to try to work out a compromise. We can explain short sales to them, and what happens if foreclosure is on the horizon. I have referred these people to local attorneys and accountants who are experienced in short sales so that they can approach the bank with the best possible advice. There may be no money left in their house to pay us a commission, but rather than walking out their door, I think it's an opportunity for us to help them get on the right track, even if we don't take a listing that's upside down. Someday those people will be back on track and they will remember who helped them when they were down and out, or better yet, if their lenders work out a deal with them, they may be calling you sooner than you think to list their home as a short sale.

A gentleman calls me up last week and tells me that his house has been on the market for a year with another Realtor and she hasn't been able to sell it, his contract is expiring, and he needs some aggressive action to get it sold, so he wants me to come over and look at his house. I looked it up on the MLS, thought it looked good on-line, and it was priced very fairly....so I couldn't figure out what the problem was. I told him I would stop by and talk to him. When I pulled up to the house I realized that he backs up to a cemetary. So I go in, introduce myself, walk through the house with him, and then I lead him over to the back door....and here is how the conversation went: Me: Let's go outside on the deck and look at the yard. Him: Oh, there's nothing out there to look at. Me: I always need to see how big the yard is. (I open the door.) Him: See? We have a fantastic yard. It's very quiet and no one bothers us. Me: Do you think that some people might be unnerved looking at your view of the cemetery? Him: Why would that bother anyone? I don't have to deal with nosy neighbors. ****Right after he says this, two gravediggers ride up pulling a casket and a canopy tent, and set it down as we are looking out at the yard.***** Me: There, you see that? Do you think some buyers might not like the idea of their backyard barbecue being interrupted by the gravediggers burying a casket? Him: What gravedigger? Me: That one, right there, setting up the canopy and the casket. Him: What casket? Me: Okay, I have to go now. Let's touch base next week. ( Not ) My reason for telling this is that sellers need to get real about their properties. I followed up my meeting with this gentleman with an email explaining that there is a buyer for EVERY property, even one backing up to a cemetary. If a home is priced correctly for the situation, there will be a buyer for it. I am sure that his current agent has explained this to him over and over, but sellers need to really face the truth if they want their homes sold in a reasonable amount of time.

I don't know what's happening in other markets, but the real estate market in Arlington Hts., IL is definitely picking up.  By "picking up" I don't mean that prices are rising, because they are not. But I do mean that it seems like more and more buyers are getting serious about buying again.  They seem to be recognizing that prices are very attractive for homes right now, even if it took about a year for sellers to realize the new pricing structure.  Once the buyers see that they can get a home for a reasonable price, they are willing to jump in the market. This is in spite of the media putting out conflicting reports, and failing to emphasize that real estate is always local.  So when the media puts out statistics that are averages for the whole country, it gives a misleading impression of your own local market.  I think consumers are now recognizing this, and are paying attention to what's happening just in their own locale.