Seller, Wait Your Turn! How To Shrink The Housing Inventory and Increase Demand!

It makes sense.  I have two multis which are very pricy but it is hard to say if they are over priced.  They are right on the beach and there are NO comparables.  None.  I was thinking of letting them go because they will not come down, but now I have an investor wh might be buying them BOTH next week!

Mirela, I agree with you completely as I have been telling my sellers the same thing since January. I never thought about it shrinking the inventory just the fact the seller couldn't compete with the REOs on price.

Mirela,

I've been saying this for the last few years now.... in my market we have about q 4-5 yr supply of condos and town homes and about a 2-3 yrs supply in single family homes. The inventory will never catch up unless HO's remove their homes if they really don't need to sell and so we can clear out all the toxic loans in foreclosure and short sales first then sell.

Unfortunately too many sellers are over priced for the market

I had a lady call today to discuss when to list her condo - I told her to wait!!!

Well put post!  There are too many overpriced homes for today's market!

I'm not taking any more over-priced listings.  But there are plenty of agents that will.  Of course, after they spend all of their money and go out of business, we'll still be standing. 

I'm with you.  NO moe over priced listings.  There is no point to it.  I have no desire to LIST houses, I want to SELL houses.

Overpriced listings will eat away at your profit.

We have turned down 6 this week.  It's hard to do, because when this market turns around, and it will, he who has the inventory will be sitting in a pretty sweet position. 

We have do decide how overpriced they are and if there's a chance in Obama they will might sell.

Have a great weekend.

Love it! Overpriced listings are a huge liability right now. The bottom line must speak and it's says loud and clear "Don't take an overpriced listing AKA an unmotivated seller" in this market!

Best idea I've heard in months!  If sellers don't have to sell their homes and feel comfortable renting them out for 12 - 18 months, I think it is a great idea.  When there is limited inventory, it is amazing what it does for the home values.  I work in a small neighborhood and there are only a handful of homes in each price range (from $200K - $1.0M) -- and they are selling between 96 - 98% of the list price! 

*** I've also joined the club and let go of two over-priced listings this month.

I have a listing appointment Saturday evening with a client.   I sold her this home about 5 years ago and she now wants to move closer to her clinic.  Hopefully she is going to be doing a move up and I can show her how it will benefit her in this market.  But if she is considering a lateral move, she will not be happy with what I have to tell her.  Great to read this! 

Mirela... this is a great way to reduce the inventory for sure...  this could really help each market area

I'm in agreement with ya!  Sellers are still thinking it was a few years ago and they think they can make huge profits off that house they bought 5 years ago... even though they know it's a "buyers market" out there.  I just can't afford to take on those over-priced listings... not a smart move for my business (and it's really not in their best interest right now either).

Good post as usual Mirela!

Bob

Really like this post!  It's good plain common sense -- reduce the inventory, and voila!  and loved the subdivision photo! Just heard today that a listing I didn't get 4 months ago -- they thought my suggested range was too low, was taken off the market and the owner is going to rent it.  Have been telling potential sellers that they have three choices - Price it realistically, or wait if you don't have to sell, or rent it. I don't want to spend time and money - both are resources to be managed -- on a property I KNOW won't sell!

That's my greatest concern---the sellers who are waiting will all put their homes on the market as soon as things turn better and then we'll be awash in more inventory.

Mirela - I agree with you 100%. I certainly don't want any more listings than I have already, just sitting on the market! I've turned down 2 listings and had 2 go to management companies in the past week. I know it's going to get better but let's help it along!

It really is a waste of our time and our money if we take listings that are overpriced...we could be using that time and money for clients who are buying or who have to sell....and we could be using that time to market ourselves...taking overpriced listings means we are working for free or paying to take them.

Mirela, we believe that you are right one the money. How does it make sense to keep a listing that no one is looking at? We just talked with most of our sellers and either they have dropped the price or have taken them off the market. Great post.