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But at this Price .....who cares? ----WHAT DID YOU JUST SAY?

Real Estate Broker/Owner with HOMEFRONT Realty WA State Licence #23384

October 14, 2008 01:37 PM

I CARE! MY BUYERS CARE! And you as the listing agent should care! I just have to get some things off my chest! We all know this is a tough market! Even areas that were barely hit by the huge decline are seeing slow down and we are working very hard with qualified buyers to move this market along.

Now, I don't want to offend anyone - but I am tired of hearing "I only work with Sellers", "I never work with buyers", well if what I am saying offends you then maybe what you have said offends me. Oops did I say that out-loud? LOL!! Ninety percent of my business since 1994 has been with buyers. My market niche is new construction, and until 2008 that is all I did. I was usually a project manager which meant in most cases I ran the show and I was a buyer's agent.

Having left the new construction arena at the end of 2007 I am still drawn to buyers - love them! There is nothing more rewarding than that 1st time-buyer or that military buyer - NOTHING!! To see a young family realize that dream of honest home ownership is a real high! Like a night on the town hanging out of a Hummer stretch limo! I love it!!

Ok - off track there a tad! On to my buyers. My buyers come in all forms and all economic backgrounds. I have buyers right now in the $150,000 ranges and buyers in the $550,000 range. Remember all real estate is local and I am so darn sick and tired of everyone thinking that a house isn't a nice home unless it is over a certain price. What is that price? Is it over $300k, over $400k? Why do we allow the market to be filled with over priced homes that are in dire need of repairs and CLEANING! Why do we (as an industry) publish in the public remark section words like, "who cares"! Way to make it tough on the agent that is going to bring you buyers!

I came into this business when a starter home was under $80K, those homes today are selling for $280K.. Ask yourself what the median income for your area is and then see if you are a "housing snob". You know what the median in my market is? Bremerton - $30,950, Port Orchard - $34,020, Poulsbo - $38,875 and Silverdale - $48,164.

Now you do the math and figure what types of loans, and I mean "honest" loans should these families with kiddos not qualify for but what loan would be the best for a family’s budget? I always tell my clients that it isn't "WHAT" you qualify for it is "HOW MUCH" you want to write a check out every month for years and years! There is a difference!

I am tired of researching/showing homes that have that "as-is", needs repairs, needs some TLC when in reality the agent needs to type into the remarks section the truth, as in, "piece of crap", floors falling in, POS! You either get that home to a point that it is presentable or get that home to a point that is presentable! (OR PRICE IT RIGHT!) I guess that is why you only have 3 photos up.

Yes, I would say that in Kitsap County we still need a price reduction! I am tired of making the offers and working my butt off!! I am tired of the back and forth, PRICE IT RIGHT! So I don't have such a time putting together that offer!

House needs a little TLC, but is offered for a great price. ($198,000)

This house is ready for all your improvements ($214,000)

And my favorite

Needs some love, but at this price...who cares! ($225,000) - ok here is the math

Payment with taxes and insurance - *$1609.00 - so what type of income is needed? I am not a lender so don't bust me out for this but a conservative figure of the gross annual income would be somewhere in the area of $65,000-$70,000 to qualify for the "Needs some love, but at this price...who cares?!" house.

Now maybe it's just me but I know lots of people that make under that $65,000 who are financially responsible with little debt, some savings and just want to realize the American dream, so don't give me the "who cares"! That is being a "housing snob"! Go re-check your market!

So are you a "housing snob"? What's the market like where you are? Is $225,000 a piece of crap house?

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Troy Downey

RE/MAX SOUTHERN HOMES - Vestavia Hills, AL

Realtor - Birmingham Real Estate Residential & Com

I hope you have bunches of closings

Troy Downey, Birmingham, alabama: RE/MAX SOUTHERN HOMES: 205-999-7218

Oct 14, 2008 01:51 PM

Marlene Pellegrini

Norwich, CT

Inventory is high so buyers have many choices now. They have the choice to not buy those overpriced fixer uppers.

Oct 14, 2008 01:52 PM

Lane Bailey

Century 21 Results Realty - Suwanee, GA

Realtor & Car Guy

I agree with you... and I disagree with you.

There are far too many listings that are priced as if they were in reasonable shape... and they aren't. The sellers need to get on the stick.

But, you said it yourself... real estate is local... VERY LOCAL. Pointing out a $225k house (who cares at this price) without knowing more about it is teasing. I have been through some homes that at $225k, they could be falling in... and there would be a line to buy them. Others at $225k could be loaded with granite, marble and oil-rubbed bronze, but would be terribly over-priced if in perfect condition.

Oct 14, 2008 01:56 PM

Bill Gassett

RE/MAX Executive Realty - Hopkinton, MA

Metrowest Massachusetts Real Estate

Hi Jo going back to the pre-market correction 3.5 years ago in market $225k got you a lot never mind a house! It is extremely difficult for a 1st time buyer finding a decent home for the numbers you are used to. I suppose the fact that our incomes here are a little higher helps but not by that much.

Oct 14, 2008 02:18 PM

Sonja Patterson

Keller Williams - BV - College Station, TX

Texas Monthly 5-Star Realtor Recipient for the Hou

Well, here in Houston, TX...$225000 can buy you a lovely home further out from the city...or it can buy you a nice tear-down closer into town. In Bellaire and other parts of town, people will buy a lot with a 50-70 year old home...tear down the home and start from scratch. LOCATION LOCATION LOCATION!!

Good luck to you Jo!!

Oct 14, 2008 02:27 PM

Lisa Heindel

Crescent City Living LLC - New Orleans, LA

New Orleans Real Estate Broker

Our average sale price is around $170k, so $225k is not a piece of crap - unless it's surrounded by $425k homes. The bottom line is that listings need to be properly priced from the start and sellers need to get a grip on reality when preparing and pricing their homes. They can't ALL own the Taj Mahal.

Oct 14, 2008 02:34 PM

Paula Swayne

Dunnigan, Realtors, Sacramento (916) 425-9715 - Sacramento, CA

Realtor-Land Park, East Sac & Curtis Park -Dunniga

I had an agent describe her new listing as a home in very original condition except a great roof. It needs everything, but it is in a GREAT location. Okay...we went to preview it (thank goodness just us agents). The neighborhood is good, but this particular house is on a a street that deadends into a cyclone fence and a metal building on the other side of it. There is a school play yard across the street, and I am not kidding, kids screaming at the top of their lungs! The house? Well, I think it is impossible to remodel...razing comes to mind. So, what happened to truth in advertising?

Oct 14, 2008 02:35 PM

Jo Olson

HOMEFRONT Realty - Kettle Falls, WA

Retired - HOMEFRONT Realty @ LAKE Roosevelt

Angelia, 10K - do you really have homes for that?

Troy, right back at ya :)

Marlene, that is true. I am just sick of having to weed thru them all.

Oct 14, 2008 03:47 PM

Jo Olson

HOMEFRONT Realty - Kettle Falls, WA

Retired - HOMEFRONT Realty @ LAKE Roosevelt

Lane, get on the stick is for sure! I understand your point. I guess this house just pushed me over the edge. No real updating since the 70's.

Bill, I am just a little frustrated that we haven't done more of a correction here.

Sonja, thank you - yes it is all about location. I always hear about all your "McMansions" there in Texas :)

Lisa, I think we are in denial here in this area. I really think that for $225K someone at some point should have had to do some updating from 1972! Hey maybe its like clothes and all will come back in vogue - NOT! :)

Paula, That is sad. Most of the ads I read today had to have been written by agents smoking something!

Oct 14, 2008 03:57 PM

Jesse Clifton

Jesse Clifton & Associates - Fairbanks, AK

Jo... I hear ya. We have a market full of left over 70's and 80's "pipeline era" homes that are still vastly over market value... sellers are still hoping for a quick turnaround to '05/'06 prices. Yea, right... and I'm a Rockette. :) $225,000 is a speck above our average but, and this is a big one, it can STILL be a piece of crap.

Oct 14, 2008 08:27 PM

Karen Kruschka

RE/MAX Executives - Woodbridge, VA

- "My Experience Isn't Expensive - It's PRICELESS"

Jo Up until last year a doghouse would probably be in the $225,000 range here in Northern Virginia. You can gwt a pretty decebt townhome for that price right now in Prince William County - not palatial, but decent.

Oct 15, 2008 01:58 AM

Melody Botting

Broker Associate PenFed Realty - San Antonio, TX

You Deserve The Best

225k is over 3k square ft, two story, and three car garage. Sometimes has a pool and less than 15 yrs old. You have a lawn but no need for a riding mower. My friend in NY is green with envy! That is not 'my' house, however...

Oct 15, 2008 02:15 AM

Michelle Tucker ~ Pooler Real Estate

!Daley Real Estate - Pooler, GA

Rincon~Savannah~Richmond Hill

Jo in Bremerton: I hear your frustration! The first time home buyer or Military family trying to buy a house within the budget, what a challenge in your Kitsap / Bremerton Real Estate area! I agree listing Realtors need to do THEIR part. If your MLS allows for 15 pictures why do listing agents only put up 3? I am already at the home taking pictures, why not shoot 20 pictures and pick from the best to advertise!

Here in the Fort Rucker Real Estate area this is what you will get for your hard earned money: Both homes are in the same neighborhood. However, right around the corner there are homes built in the 70's & 80's with much more square footage, running in the same price range and outdated! As a consumer / buyer which would you choose? Now, the tough question: are the older homes over priced or is the newer homes under priced? The median price range of sold homes is about $180k.

Fort Rucker Homes for sale

$189,900 4/2 with over 1700 square feet of living. Built in 2004.

Fort Rucker area house for sale

$214,900 3/2 with over 2000 square feet. Built in 2005. Upgraded kitchen, bathrooms and carpet! Subdivision living without the cookie cutter style homes.

It is interesting to see the difference in what the dollar can buy in different parts of our nation. It will also be interesting to see how the market adjust to the changing economics of the world.

Jo, wishing you luck with your home selling and home buyers in the Kitsap Naval Bremerton area! I am sure your dedication and OUTSTANDING customer service will allow you to SHINE and be the Realtor of choice in the KITSAP / PUDGET SOUND area!

Oct 15, 2008 03:55 AM

Jo Olson

HOMEFRONT Realty - Kettle Falls, WA

Retired - HOMEFRONT Realty @ LAKE Roosevelt

Jesse, I am just trying to wrap my head around over priced homes. Do sellers just not listen to agents or is it agents being in denial and not readjusting to the new market.

Karen, Northern VA is a pricey place to live! I would suppose it is all relative.

Melody, why do you think Texas has such amazing home prices? I know the taxes are high but when it comes to land prices that can only effect a home so much. I would assume labor is cheap - but when it comes to materials is "Lowes" really that much cheaper in Texas? Where does the lumber come from? I would guess the north - so how does it happen? I have never been able to figure that out.

Oct 15, 2008 04:18 AM

Jo Olson

HOMEFRONT Realty - Kettle Falls, WA

Retired - HOMEFRONT Realty @ LAKE Roosevelt

MICHELLE,

thank you so much for the details! I love learning about other real estate markets! I really could use some of those awesome looking ramblers up here in "2-Story" land! Our baby boomers knees are starting to lead them to one level living and we just never built many! I can't even comprehend those homes at those prices! Michelle, you are just too kind for words!!

Oct 15, 2008 04:20 AM

Jesse Clifton

Jesse Clifton & Associates - Fairbanks, AK

Frankly, I think it's equal parts stubborn sellers and agets not being in tune with the market. Either way it's a losing situation.

Oct 15, 2008 09:38 AM

Jo Olson

HOMEFRONT Realty - Kettle Falls, WA

Retired - HOMEFRONT Realty @ LAKE Roosevelt

Jesse, I do think there are still agents out their in "lala" land!

Oct 15, 2008 09:49 AM

Rich Jacobson

Fathom Realty West Sound - Poulsbo, WA

Your Kitsap County WA Real Estate Broker

Jo: I have a punching bag back at the house if ya wanna borrow it?

Oct 15, 2008 01:15 PM

Jo Olson

HOMEFRONT Realty - Kettle Falls, WA

Retired - HOMEFRONT Realty @ LAKE Roosevelt

Rich, lol! In my past life I had a "clown bag" in my office :)

Oct 16, 2008 04:14 AM

Valerie Spaulding

Windermere Peninsula Properties~Allyn~Belfair~WA - Belfair, WA

Allyn-Belfair-Hood Canal-Local Expertise!

I agree and disagree as well - I think that some agents are afraid to walk away from a listing in these hard times - not realizing that the it is the "right" priced listings that are where the money is and therefore may let the seller run the show with realism and their pricing.... I also think again that they figure a client is a client whether they are buying or selling and if they can just hang on to that client long enough....... maybe someday they'll be realistic. I also think when an agent takes that type of a listing they have given the seller an excuse/reason/whatever to turn down a realistic but lower offer.... just my opinion....

Oct 16, 2008 11:12 AM