Sellers Will Likely Need to Adjust If They Want To Sell In This Market

During the hot days of the local real estate market, our area had 1400+ agents competing for listings and sales.  Now, with the market in a stagnant and unstable place, we have approximately 500 agents.  That's a 74% drop in agents.  Even still, that's probably 50% more than is necessary.

Building permits for the tri-county area are running at 114 for the year.  Last year, they were at 341.  The year before that, they ran at 1783.  Simple numbers like that demonstrate to those who pay attention that the market is still very fragile in our area.  The loss of agents and the lower building permit numbers are good numbers to know when approaching potential listings. 

It is a buyer's market.  Everyone should know that by now, but some homeowners still think they can demand whatever they want and buyers will magically appear.  Unfortunately, it's not 2005 any longer.  If a seller wants to get his house sold, he will have to be aware that:

• His home will more than likely not sell anywhere close to what he paid in the pre-crash market.
• He will also need to understand there is a high volume of properties in competition with his, and some of those properties are short sales and REOs which are priced much lower than his.  Just because a house is a short sale or REO does not mean it's trashed.  It might be a wonderful house, lost by a great family, that ran up against a terrible time in our nation's financial history.
• He will need to make sure all of his systems are working.  He may not be able to discount his price slightly to allow new buyers the funds to make repairs.  He needs to be aware that the similar house down the street doesn't need a new furnace.  Or, the one across the street doesn't need a new roof.  The house needs to be in good to excellent condition.
• He will need to keep the house and the lawn and landscaping in top condition all the time.  The house needs to be in showing condition 7 days a week.
• He will need to know that a buyer has no emotional attachment to his house.  Don't take any offers personal.  They might be all over the map.  Make sure he counter-offers.  Don't throw an offer away because he is offended.  It might be the only one he gets, and the buyer might be checking his tolerance for a lower price.
• He will need to be ready to move.  Don't assume the time from contract to closing will be 30-60 days.  I've had multiple contracts that closed in less than two weeks.
• He will need to listen to his Realtor.  The professional he hires should be in touch with the local market at all times.  He/she should be able to keep him informed of changes.  He can't assume his buddy on the other side of town is the real expert on all things "Real Estate."
• He will need drop his emotional attachment to all the labors he put into his house.  Buyers don't care, and they shouldn't.  There is zero value to emotional ties to a home. 

We're in a new time, and buyers and sellers are making adjustments all the time.  A seller who is not attuned to the current conditions will likely be sitting in his house a year from now.  If he truly wants to sell, he will need to make numerous adjustments along the way.