Deflation Nation: How to Be A Seller When No One Wants to Buy
This was a post made by a mortgage officer in CA. Although our real estate situation in San Antonio is not as dire as some of the hardest hit areas of the country, our market is softening. So if you are really interested in selling your real estate, read this post.
Have you noticed????? Just about everything out there is, well,...... a whole lot cheaper.
Sure, the focus is on real estate and the the stock market. But "declining values" have impacted almost everything we buy. What we learned in Econ 101 still holds true: Lower the demand and you are going to lower the price, every single time.
And that thing called DEMAND? The best way to describe that right now is IN THE TOILET.
Who can "demand" anything when you are busy just trying to keep your head above water?
Dog paddle or die. That's the mantra of most consumers these days. Wallets are closed and shopping for sport is nearly dead.
And let's be honest. We can stimulate real estate buyers all we want, but until people start spending money on all the rest of the stuff out there, the economy will continue to tank.
Even those consumers who are swimming along with no problem are too afraid to take advantage of all the cheap, cheap stuff and bargain prices.
Has fear of drowning become a national obsession?
Cheap stocks. Cheap real estate. Going out of business sales. Cars sitting with thousands in rebates AND 0% financing.
We used to say cars that wouldn't sell "grew whiskers". Now there are cars with full beards sitting on dealership lots.
Your favorite restaurant sends you a "free lunch" coupon, but when you get there, they are out of business.
And 75% off is the new 25% off when it comes to buying clothes.
Still, we don't buy. It is called market mentality, and whether it is justified or not, you must understand it if you intend to be a seller in this economy.
If you are a seller of ANYTHING in this environment, what do you do?
- You don't "start high"
- You don't try to sell something that is dirty or needs repair
- You don't expect to "sell quickly"
- You understand that if you hold on for too long to get the "better price", you can shoot yourself in the foot.
- You don't try to "do it yourself". You need professional help and marketing NOW more than you ever did before.
- You don't take offense when your buyers low ball, or ask for a discount.
- You don't cling to the idea that the price 6 months ago has anything to do with the price today.
- You understand you must get over your emotional attachments to the thing you want to sell.
- You make it EASY for a buyer to buy.
- You show compassion.
Someday, sellers will rise up and once again, make all the rules. Until then, sellers must understand this: It is exhausting for buyers to constantly dog paddle. And scary. Even if it is in a sea of ridiculously low prices.
The water still seems awfully cold, and those lifeboats are taking FOREVER to arrive.
Written by Janet Guilbault, Mortgage Lending Expert Based Out of the San Francisco Bay Area
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