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Am I The Only One....?

I keep hearing that the market is picking up.

my fellow Realtors are crowing about the multiple offers their listings are getting within days of putting the home on the market.
my fellow Realtors are complaining that they are coming up against multiple offers on properties their buyer clients want to purchase.
can't get mortgage underwriters to move fast enought to get to settlement,
homes inspectors can't get out to inspect properties fast enough,
appraisers taking forever to come out to the home and then send in the appraisal report to the mortgage company.

All I can say is:, "Huh?"

I have four listings on the market (three single family homes and one condo) and

they are all under $300,000 (a price range right in the "sweet spot" in the MD Suburbs of DC)
they are all in "move-in" condition
they are all priced at or below all the comps in their market area
they all have Sellers that can say "yes" within 24 hours of receiving an offer
they are all FHA, VA, conventional, CDA, etc. compliant

Yet, they are sitting. They're all over the Internet (should I really advertise them in homes magazines? will print ads really work?), I've done the Open Houses. Yadda, Yadda, Yadda.

Sure. They get showings. Some feedback: "too close to the [moderately busy] road", "smaller than what my clients want", "need additional bedroom on main level", "want a finished basement".

Am I the only one that's running into buyers that have amazingly high expectations? Here's the page where the listings are located -- maybe I'm nuts.

Posted by Ken Montville -- the MD Suburbs of DC on 05/22/2009 06:29 AM

Comments (11)

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11 Comments on Am I The Only One....?

MAY

No you are not the only one real estate is local and some times loco. Overall there may be an uptick but its like a fish jumping into a life raft of hungry people . The occupants say hey things are looking better. Can I have a tail please. Whether or not this is sustained is an open question. We find an up tick in first time buyers. But other segments of our market like second homes are still very slow

Ken, I'm one of the agents who is saying everything in your first list...I don't know your market area but I do know real estate. Under $300K may be sweet but homes still have to be priced to get folks in the door. Have you checked your MLS stats to see what price ranges in your listings area are actually getting shown? I find that if you are in a range being shown and YOU are not getting shown, there is a reason. Ask the showing agents what the objections were. If you are at $290 and showings are highest in the $250-$270 range, you are too high.

Comps have little to do with anything. Check the actives...what can a buyer with x dollars to spend look at in your area. Price to be in the top 3...this means the best condition at the least price.

Offer incentives. Get a lender to run a rate sheet showing how much the payment would be if the seller bought down the rate. Offer a home warranty. By incentives I do not mean gift cards to agents or free weekends at a spa. Benefit the buyer...monetarily.

Move in condition and sellers who will say yes are nothing more than expectations these days...not special.

Print? Waste of time...it's about price + terms and condition.

I could go on but hopefully this helps! Keep the faith!

The sweet spot here in Phoenix is $150,000 and below. Investors and first time home buyers are snapping them up. They will sell-hang in there

Ken..No I don't think you are the only one..Have you put them on ActiveRain MLS ? I notice i get an influx of showings when i put them on..Answer to your question I am hoping it is a late spring market in some locations... also REALBIRD and Craig's list ...Thank You

HelpfulHannah your friend in Philadelphia

Charlie -- Thanks! I love the fish jumping in the boat analogy

Sarah - Thanks for the input. I got the prices down pretty low. I even paid to have two of the houses appraised by a real appraiser to convince the Sellers to price accordingly. Unfortunately, the Sellers aren't willing to price below the short sales and REOs in the neighborhood which is what a lot of the Actives are. Thanks, also, for confirming my thoughts about print advertising.

Harry -- I'm hangin' in the best I can.

Hannah - RealBrid - check. Craigslist - check. AR MLS. I'll have to check into that.

Ken, if REOs and short sales are your active competition...ouch. Nothing to do but be as aggressively priced as you can, keep up the condition and wait for those to get off the market. You are experiencing what many do not realize may be coming to an area nearby. When the 'shadow inventory' comes on the market (stuff banks and lenders are holding back so as not to flood the market) there is little a non-distressed seller can do if they won't compete! Buyers are all about the bargain right now!

Ken, I think you touched on the problem. If the sellers aren't willing to price at or below the short sales and REO's in the neighborhood, they are not competitive in the marketplace. You said they are priced below the comps. The sellers have to realize the short sales and REO's are the competition. Sounds like you are doing the right things in marketing the property. Good luck.

My Prince Tops Your Prince! The market is truely odd. I have a condo in Arlington which isn't moving, supposed to be a good market there but I've sold 5 in Prince William County and have 2 more under contract. Go figure.

MAY

Ken, we are also seeing multiple offers but mostly on REO's & short sales -- buyers are looking for BARGAINS!

Your blog is now featured at http://activerain.com/groups/virtualoffice

I do think buyers are thinking if its not a foreclosure or a short sale then its not a bargain so they don't even consider it. I think the market can be pretty quick in some instances but it really is a strange market. I agree with what i've seen of your listings that the prices seem pretty good. I actually told another agent in my office about your College Park listing because he had a client in that market. Good luck with them. Here's hoping a buyer seems them for the great value they are.

Some buyers are just unreasonable about what is available in the current market. I hate to say it but if they increase their price range they might find what they want... Good Luck!

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