"The desire to do business hasn't gone away, but the heat has gone out of the market." -Gary Keller

"In a buyers market, sellers are often going through the five stages of grief; 1.) Denial, 2.) Anger, 3.) Bargaining, 4.) Depression, 5.) Acceptance. My job is to counsel them through it." - Martin Bouma, Ann Arbor, MI Realtor

A shift exposes and magnifies the classic real estate price conflict that has always existed: the asking price a seller wants versus the price a buyer is willing to pay. To illustrate this conflict and how the market determines who has the upper hand, I'll share this story:

At a bar exam three different would-be attorneys forget their pens. One asks a test proctor if he has an extra pen. He does, but only one. The first attorney says, "I'll give you a dollar for the pen." The second attorney chimes in, "I'll give you two dollars!" Then the third says, "Hey, I'll give you three!"... By the next time the bar exam is given, all the attorneys know not to forget a pen and all the test proctors have heard they should bring extras. This time only one attorney forgets and when he asks a proctor for a pen, the proctor answers, "Sure. I'll sell it to you for three dollars." Then another proctor jumps in and says, "I'll sell you one for two dollars." But before the attorney can pull out his billfold, a third proctor offers, "I'll sell you mine for just one dollar.

In a sellers' market, the power of pricing favors the seller and buyers will compete for a limited supply. This shift means the power is now in favor of the buyer and that sellers will compete to attract the limited supply of buyers. Our goal in representing a seller in a shift is to use pricing to empower them as much as possible. And that's not easy.

 "Just a year ago, buyers would get into bidding wars, giving up stipulations such as inspections. But it's the buyers' turn now.  Now sellers are making the deals and doing whatever they have to do to sell their home. 'You're always looking for some kind of edge that's going to take you beyond what your competition is going to be,' said Reba Haas, realtor."  (http://www.king5.com/localnews/stories/NW_101607WABhome_sellers_LJ.17704167c.html)

The best marketing message a seller can send is: We're priced right and serious to sell. The first time someone sees a property is called the "window of opportunity" because it's the single best chance to create the impression that will sell the house. First impressions are the original pictures framed in the mind and heart- they are usually lasting ones. Make sure your home is giving the right impression.

I have talked about the 80/20 rule before and I am going to re-visit that idea again here. Your home must be in the best 20% of existing homes on the market in terms of price and condition. If you're to become true sellers then you're going to need competent professional guidance to price their homes to selling the desired time frame.

You only get one chance to make a good first impression. Making the wrong impression will cost a seller time and money. You must outthink the other sellers that you are competing against. Don't chase the market. My job as your agent is to not only make observations on the current market, but I must forecast what is to come and where the market is going based on past trends and statistics. As illustrated by the figure below,

If sellers fall behind the market with falling home values, they can end up chasing the market down, because home values are always falling faster than their price reductions.

The Egerer & Weidauer team knows real estate and our services are invaluable to providing the best home-buying and selling experience possible for our clients. Give us a call- we would love to help!

206.661.7256     www.jeremyandnicolesellhomes.com     360.990.4083