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How to set expectations for buyers and sellers in this market . The mindset as seen from my view.

By
Real Estate Agent with Keller Wiliams -Citywide

We hear it every day. How is the market? Are homes selling? Of course- we know the answer and it's YES! While it's harder to buy and sell than in past years, there are many serious clients looking for homes despite the media and the dark news we hear nightly.

People still move.  People will always move. They divorce, they get married, they have more kids, they outgrow their homes or in some cases- need less space. They get old - they get sick - they retire- they get transferred.Life goes on despite the news!

In our area we aren't seeing the total down and out - gloom and doom that's splashed across the morning paper as we are truly  fortunate to be in the Metro DC/Nation's Capital area- where work continues to chug along in a city that will not likely rust to a halt anytime soon. At least not until this deficit is payed off .  Can you imagine Washington cutting hours because we have no work for the employees?Really---- Forbes Magazine just named DC as the number 1 place in the World to buy property! Even a better place than Hong Kong or some other cool city!

But no matter how reasonable our market is... it doesn't stop the virus from spreading throughout our area.

Today- even here, buyers feel they should ask  for blood ( or a kidney) from decent sellers who have listed their homes , homes that have been carefully tended for decades ,updated, renovated, lived and loved-in homes. Homes where their  children learned to walk, where Hanukkah candles or Christmas trees were joyfully lit , where life was a safe harbor after a long day working at the Pentagon or in some tiny office in the Department of Commerce.  Buyers need to remember that not everyone bought high and took a risky loan, that many sellers  paid their mortgages on time and that this nut, this precious gem,  is all that may be left of a plan to retire to some sunny beach town where a person can watch the sunset at night rather than hear the drone of the Beltway or watch endless trails of tail lights blur into one while you sit on I-66 .

 

Sellers - Don't get so puffed up. I am not totally asking buyers to surrender totally  to your needs either. You had many good years where you sold your home to the highest bidder and didn't care if the buyers  were both fresh out of grad school with loans to their eyeballs- provided they waived all inspections, paid you top dollar, gave you a free month's rent back and bought the  house with your old appliances and a lousy roof.

Maybe you got greedy and forgot that in days gone by when you were buying your first home, that  you too didn't have huge savings to ' escalate' over the sales price with and you'd have never considered dropping the  appraisal contingency. And  dear sellers- you began  to become  envious . While you were not ready to sell ' just yet' you began to envy  that cheesy neighbor next door. That guy who moved in just a year ago-  sell his house for 100K more than he paid-which was already 200 K more than you paid .

But you weren't ready then  and now you are angry and digging in despite good council about appraisals not coming in unless they can be supported by the comparables- and the inability to get loans without a huge savings account.You don't listen and that's not right either.

 

So .. where is this soapbox  going? I believe we as professionals need to readjust ourselves mentally  and begin to  set new expectations for our buyers and sellers.

Buyers- if it's not a foreclosure or short sale- try not to ask the seller to hemorrhage just so you can  feel like ' you got a deal'.
Remember- it's  the one you'd like to call your home- and there is a value to a home  beyond the bottom line. We all need someplace to live  where we can listen to heavy metal or Broadway soundtracks without being asked to  ' turn it down', or to sit under the stars and dream about a better day . So- if you do ask for blood-  try to be a bit kinder.  Think how you'd feel if your home was well cared for and some smart alec buyer insists your home is "just like' the one across the street with black mold in the basement and NO appliances"!. Make a fair offer. Be understanding of what that seller is dealing with . It's not easy for the sellers right now- and some day, yes..just someday  --- it might be you.

 

Oh- and sellers.. you aren't off the hook here either. Home prices have corrected. Home prices have corrected. Home prices have corrected.

Did you hear me yet?  I pray your listing agent isn't afraid to tell you the  truth and that you are wise enough to hear. Home prices HAVE corrected.  Buyers CANNOT  get loans on a sales price based on prices you saved from some fancy  postcard sent to you two years ago from an agent who used to work at an IT firm on weekdays and sell houses after work. . Face it.... it's OVER.Well- at least for the next few years.

Sure. You can sell your home- but you won't make a bloody killing. You'll make a fair profit and .. if you are buying elsewhere.. like Florida or Arizon - you'll get  a great deal on that home and it will all balance out. You'll make a good move if you are moving up. You'll make a fine profit if you inherited the property or bought it anytime before 2000.  

If this is all you have- your only asset .. I truly DO  feel your pain . For you are in my mind- the most victimized group out there. We  are hurting in our investments- whether home value or stock market. .. but  I still bet your home equity is stronger than those shares of Country Wide or GM ! So really-  if you want to sell -and can sell- stop being stupid or greedy when it's not the buyer who has made this market so bad --- it was your neighbor! Mr. and Ms. Seller- you should be glad to see that little buyer come through your door for a showing because - after all- some of your fellow sellers haven't had a visitor in months!

 

And Agents- for those of you who are  listing the REO's .. some of you could be a little nicer to the rest of us trying to sell them! 3 out of 4 of you are nasty as a rattlesnake  when we call to ask questions and downright UNHELPFUL at every turn. You statement that  we must have  this and that  smacks of collusion and the remarks about who and where we have to qualify with and settle with are demands.. not requests. Didn't your parents teach you  any manners? Didn't that ethics class impress you what is supposed to be 'proper contract presentation' ?  

Oh- so  go ahead- blame it on the banks! After all- they know much more than we do about ethics and honesty- wouldn't  you say? Come on ... someday soon the shoe might be on the other foot- and it's good to remember that you should never treat a fellow agent any other way than you yourself would like to be treated.

Hmm... and oh yes. Those of you who ' forget ' to share that your seller might , just might, be a short sale. Are you really that desperate for business ? It's the net sheet stupid!

 

But ..I think I sound a little judgmental.so ..I'll stop . Truly- we all need more compassion right now.We need to be kinder to our fellow associates who are waging this war in the trenches day after day after day.

For the sellers who are hurting or who are soon to  loose  their homes, for the first time buyers who are just as beat up as the sellers due when competing for a decent home among short sales and REOs, for the 'former'  agents who have left to go back to their ' real' jobs  now that the fun of showing homes and spending huge sums of money on ads -even if you know the house will take 6 months to sell and for the lenders who are the ' good one's who are out there trying to help those decent buyers  who've legitimately saved a down-payment, have good credit and have not lived beyond their means even if their friend had a BMW and a 8000 square foot house with a special closet for their cigars. 

For the rest of us still trying to service normal home buyers and sellers, it's time to turn our faces to the sun and continue to walk with dignity and continue to help people do what they've done for 100's of years and will always do until the end of time... buy and sell homes.

To those of you who read this- when you go out your door tomorrow , please try to change the ugly mindset  we are all being forced to wear into one of compassion and fairness, to one of prudence, reason and intelligence.   So that once you've cleared  that black cloud away you can spread the right kind of energy to  every person who wants to own a home AND buys one they can TRULY afford.  And SOON- every seller will be able to  sell- knowing that there is a lid for every pot and that someone will love, and care for and cherish their home the way they did.

And then-and only then-  the sun will begin to  shine ,and there will be music and laughter again in every real estate office throughout this great land.

 

 

Posted by
Kathleen LoGiodice Fong
Keller Williams | Citywide Realty
2101 Wilson Blvd. | Suite 100 | Arlington, VA 22201
VA: 703.538.2134 | DC/MD: 202.642.3664
www.nationscapitalhomes.comĀ 
www.movesmetrodc.comĀ 

The strength of experience...the reputation for results.




Matt Grohe
RE/MAX Concepts - Des Moines, IA
Serving the metro since 2003

Kathleen: I'm deeply moved by this. Thank you,

Feb 26, 2009 05:01 PM
Dean Moss
Dean's Team - Keller Williams Realty Partners Chicago IL - Chicago, IL
Dean's Team Chicago IL Real Estate Team

Kathleen -

Great post, thanks for the detailed insight!  Writing with thought does take time - yes?

As Real Estate Practitioners, we need to pre-frame likely outcomes.  However, it is tough to do as today's market is very tough to precisely predict.

You just have to do your best, keep as positive as you can, but still impart the truth.

And, we'll get through it - as will our clients, more importantly.  But there will be continued pain!

DEAN & DEAN'S TEAM CHICAGO

Feb 26, 2009 05:48 PM