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The Numbers Can't Lie

By Sandy Childs

Real Estate Agent with Keller Williams Realty

September 23, 2009 05:13 PM

One of the hardest things in this profession is getting seller's to understand the true market value of their home. Every seller thinks that their house is worth more than it actually is. I know that all of you deal with this mentality on a dialy basis. Sellers go off and make improvements and additions that they think are wonderful and that they like and hopefully that they will enjoy ~ because so many times they have made bad choices, used bad colors and are not going to get any return on the money they have spent.

The market numbers do not lie. When you figure the price per square foot that a particular subdivision is bringing ~ then do your adjustments for features (like a bonus room or a 3 car garage) the numbers don't lie.

The number is the number. We, as agents cannot make a property sell for more just because it is pretty. Yes, it will show better, however it is not worth more.

This is something that we struggle with daily with sellers. Also, the buyer is more informed and savy than ever before. You can bet you bottom dollar that the buyers, who use the internet know exactly what their home buying dollars will bring them.

The numbers don't lie and we can't change them. We have to educate the sellers.

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Tim Lorenz

TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA

949 874-2247

When the market drop in free fall we cannot add for anything. Pools. views, granite anything other than sf is not going to bring anything in a free falling market. That is why it is a good time to buy the best house in a subdivision and wait it out. Investors make a killing.

Sep 23, 2009 05:20 PM

Vickie Nagy

Coldwell Banker Residential Real Estate - Palm Springs, CA

Vickie Jean the Palm Springs Condo Queen

Our board offers Clarus Market Dynamics reports and they show true trendlines in a graphical interface that's very clear and straightforward.

Sep 23, 2009 05:26 PM

Sandy Childs

Keller Williams Realty - Spartanburg, SC

Realtor - Spartanburg, SC

Tim: I agree with you, if you have money, right now is a great time to snap up some of those bargains.

Sep 23, 2009 05:28 PM

Vickie: When we go into a listing appointment ~ we go in armed to the teeth with the market numbers. The numbers don't lie.

Sep 23, 2009 05:29 PM

Ralph Gorgoglione

Metro Life Homes - Palm Springs, CA

California and Hawaii Real Estate (310) 497-9407

And even more, the buyers will have a saavy agent who knows the comps also.

And one more time upon that, the buyer's LENDER will tell the seller what the property is worth.

Sep 23, 2009 05:30 PM

Sherry Siegel, Managing Broker, EcoBroker, ABR

BrokersGroup, serving Sequim and Port Angeles - Sequim, WA

I recently worked diligently to list a FSBO. The owners had sold several of their own homes throughout the years. Their home is immaculate; their yard is not only immaculate, it's well-thought out for upkeep, has a thriving mini-orchard plus vegetables interplanted with the regular landscaping. They knew what they were doing. And, they used the house next door to arrive at the figure they wanted for their house. After showing them the comps for this small, and somewhat elite subdivision, they still insisted their home was worth more, because of everything I've mentioned. They've now taken the FSBO sign down, and will wait for better times. Meanwhile they're not getting any younger, and the time they could be spending near family is evaporating. It's sad.

Sep 23, 2009 10:10 PM

Janice Roosevelt

Keller Williams Brandywine Valley - West Chester, PA

OICP ABR, ePRO,Ecobroker

Yes, good reminder for me as I head to meet with a seller today who will come out even on the sale, if lucky.

Sep 23, 2009 10:15 PM

Ralph: You nailed it when yo said the buyer's agent ans especially the lender, they know the numbers.

Sep 24, 2009 02:51 AM

Sherry: If they are getting older, how much longer are they going to be able to maintain that yard? Also, if they have alot of yard work to do, that is also a drawback for many buyers. People lead busy lives this day and just don't ha e the time to work in the yard.

Sep 24, 2009 02:53 AM

Janice: Good luck ~ go in armed to the teeth with all of the market data possible and stick to your guns. Good Luck!.

Sep 24, 2009 02:55 AM

Lisa Matykiewicz

United Brokers Group - Gilbert, AZ

Comps are very interesting...It is difficult for sellers to understand that there home is not valued more.

Sep 24, 2009 12:25 PM

Lisa: I think that you are right. They also have a hard time sccepting that many times their home has lost value instead of gaining in value.

Sep 25, 2009 01:27 PM

Jean Terry

Keller Williams Realty Spartanburg, S.C. - Spartanburg, SC

Sandy, You are 'right on' you have to know your numbers, and they do not lie. Thanks.

Sep 26, 2009 03:20 AM

Jean: When you run those numbers, you cannot change them. They are what they are.

Sep 26, 2009 12:09 PM