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Best Intentions in Real Estate are properly measured in results

By
Real Estate Broker/Owner with Homes By Cross, Inc.

Best intentions in Real Estate are properly measured in results.

A: We intend to sell our house, but we won't lower our price below a certain point, or make some repairs.

B: We intend to buy a house, but we only want an absolute steal. We want the infomertial deal as seen on TV. I want to offer 50% off list.

 Charlotte propertiesImpasse results in Real Estate

 

These two intentions tend to stagnate the home buying and selling process. As this stems from a give and take protocol, an unmovable party causes many contracts to simply die in negotiation.

There has to be a reasonable approach to expectations. And if there is, results will generally follow.

There is little general urgency in this market from a buyer's standpoint. Many are waiting for a reason to move. The only thing I see to make them move (outside the Tax Credits) is fear of loss. Many lose a great deal because they think the limbo bar will always go lower. If the property is priced agressively, and is a reasonably good deal...the house will sell. Let a buyer see this enough, and we will see fear of loss set in.

Sellers are on the flip side of this coin. They hear voices that the limbo bar is going higher. And feel they sell themselves short. Again ...one lost contract, sprinkled with a little time, brings fear of loss.

When Mortgage rates eventually start inching up, we should see an uptick in buyers moving. But now in many markets, what we have here is: a failure of intentions.

And All we have to fear is fear itself.

Comments(28)

Eric J
Eric J - Dream Home Financing - Freehold, NJ
Dream Home Financing

Excellent points Claude...and I am sure you have the skills required to convince your customers (sellers or buyers) of where reality is vs their expectations.

Mar 30, 2010 10:35 AM
Claude Cross
Homes By Cross, Inc. - Charlotte, NC
Charlotte NC Homes For Sale

Eric - Lord knows I try. Thanks Pal for the vote of confidence :)

Mar 30, 2010 11:33 AM
Michelle Francis
Tim Francis Realty LLC - Atlanta, GA
Realtor, Buckhead Atlanta Homes for Sale & Lease

Claude, 

That's why they call it a meeting of the minds.  I do agree, both parties need to be working on it at least to some degree, or a closing won't happen.  

Last year one of my buyers made a respectable offer, the sellers came off like .2% of their asking price and when we walked away an hour later they were shocked.  The GREAT news is their agent did a good job working with them and called about 3 hours later with a real counteroffer.  (He was shocked to know that we were back out looking at other homes and did a great job getting us to CLOSE!) 

So, a lot of minds meeting:-)

All the best, Michelle

Mar 30, 2010 11:50 AM
Claude Cross
Homes By Cross, Inc. - Charlotte, NC
Charlotte NC Homes For Sale

Michelle- This is where great agents like you come in and save the day like Mighty Mouse. Without us it's a free for all with bruised feelings. A hockey game without refs. You get the drift. It's why I put my jacket on and love this business, because we can really make a difference. Thanks for your comment

Mar 30, 2010 12:09 PM
Bill Travis
Captain Bill Realty, LLC - Gilbert, AZ
Broker/Owner

So very true. I know -- because my own house is worth much more than anyone wants to pay me. They just don't understand :-)

Mar 31, 2010 01:43 AM
Claude Cross
Homes By Cross, Inc. - Charlotte, NC
Charlotte NC Homes For Sale

Bill - Mine too ! So I'm not selling it.

Mar 31, 2010 01:56 AM
Howard and Susan Meyers
The Hudson Company Winnetka and North Shore - Winnetka, IL

It often seems that  the only way to get buyers past this precipice is for them to get burned on multiple attempts and to realize in spite of what they hear on the news or read on the internet, that it is quite unlikely that they will get that "once in a lifetime" deal they are seeking.  This doesn't mean that there aren't some compelling opportunities out there.

Unfortunately, for the seller, one mistake can wreck their possibility of maximizing (or even completing) the sale.

Mar 31, 2010 02:21 AM
Tom Waite
Thomas Waite Real Estate Broker - Cypress, CA
So Cal-Apartment Bldg Investments

Great blog. Interesting and informative information.

Mar 31, 2010 02:35 AM
Coleen DeGroff
Coldwell Banker M.M. Parrish Realtors - Gainesville, FL
Haile Plantation Real Estate - Gainesville FL

Claude - It's tough out there. A lot of buyers don't want to commit because they are afraid that the house will be less than what they offered before they even get to the table to close the deal.

 

If there was a way for us to concretely assuage those fears, perhaps more homes would start moving.

Mar 31, 2010 03:43 AM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

Often times these are negotiating strategies they are using on us.  After a swim in the market they often begin to trust us and see reality.

Mar 31, 2010 03:47 AM
Bill Gassett
RE/MAX Executive Realty - Hopkinton, MA
Metrowest Massachusetts Real Estate

So true Claude! The 1st time buyer tax credit has put a sense of urgency into the market for sure!

Mar 31, 2010 06:59 AM
Jirius Isaac
Isaac Real Estate &TriStar Mortgage - Kenmore, WA
Real Estate & loans in Kenmore, WA

It is so funny and sad what people can expect these days.  I hope we get to a normal market soon.

Mar 31, 2010 09:44 AM
Claude Cross
Homes By Cross, Inc. - Charlotte, NC
Charlotte NC Homes For Sale

Howard and Susan Meyers (Baird and Warner Winnetka and North Shore)

Fortunatelly you have command of the issues for your buyers and sellers. The details are stringent and cumbersome. I think they will remain this way ...A Brave new world. Thanks for the comment

Coleen DeGroff, MBA -- Your Gainesville FL Realtor (Coldwell Banker M.M. Parrish )

 

 

Mar 31, 2010 01:25 PM
Claude Cross
Homes By Cross, Inc. - Charlotte, NC
Charlotte NC Homes For Sale

Tom - Thanks

 

Apr 01, 2010 01:15 PM
Claude Cross
Homes By Cross, Inc. - Charlotte, NC
Charlotte NC Homes For Sale

Coleen - "If there was a way for us to concretely assuage those fears, perhaps more homes would start moving" THIS IS What We Need to Do.! Excellent !

Apr 01, 2010 01:18 PM
Claude Cross
Homes By Cross, Inc. - Charlotte, NC
Charlotte NC Homes For Sale

Gene - Yes the do! Smart buyers use every tactics and wear themselves out. Then they come back to a REALTOR. Thanks

Apr 01, 2010 01:21 PM
Claude Cross
Homes By Cross, Inc. - Charlotte, NC
Charlotte NC Homes For Sale

Bill - Thank you for stopping by! What happens after the 1st time credit expires is going to be an eye opener.

Apr 01, 2010 01:23 PM
Claude Cross
Homes By Cross, Inc. - Charlotte, NC
Charlotte NC Homes For Sale

Jirius  - I sure hope things become normal in some manner. Artificial makes for a strange market

Apr 01, 2010 01:25 PM
Jim Frimmer
HomeSmart Realty West - San Diego, CA
Realtor & CDPE, Mission Valley specialist

I like the guy who, after 30 years, now owns his property free and clear, so he prices it $100,000 above the foreclosure next door and the short sale across the street. Nope. Doesn't work that way.

Apr 04, 2010 03:39 PM
Wayne B. Pruner
Oregon First - Tigard, OR
Tigard Oregon Homes for Sale, Realtor, GRI

Sellers don't get it. They seem to think that market conditions apply to everyone but them.

May 13, 2010 05:30 PM