About a month ago I took a listing on a property in Big Bear. The listing that I took was not a Short Sale or a Bank Owned property. It was a homeowner who needs to sell his home. When we discussed the value of the home, I explained to the owners that while the market analysis shows that the home is worth X amount of dollars, the true test will come from the number of showings recorded in the lock box.
I tell all of my clients when I list their home, that the lock box is more than just a place to store the keys. In Big Bear, our lock boxes keep a record of everyone that enters the house. This is good information from a security standpoint, but it also tells us the rest of the marketing story. By keeping track of the number of showings recorded in the Big Bear lock box, we can get a feel for whether or not we priced the home correctly. For example, if the lock box shows that the cabin is getting ten showings a month, I can report back to my client with confidence that we have priced the cabin correctly and we are simply waiting for the right buyer to see the place. But after thirty days of being listed in the Big Bear Multiple Listing Service I find that I have one to two showing, something is wrong! One to two showings in a month tells me that the market feels that your home is overpriced. You see, when I list your cabin for sale, I need to sell it twice. First off, I need to sell your cabin to the other Real Estate agents in Big Bear, and second, I need to sell the cabin to a buyer. If the other agents see the value of the home at the listed price, then they're going to show it. If, however they feel that the home is overpriced, they won't show it.
When I reported back to my clients that we were not getting the showing activity that is needed to bring an offer, the seller was rather offended. His comments back to me were that he felt that the agents were all in collusion. They felt that it was a conspiracy perpetrated by the Real Estate agents in Big Bear to drive the price down on his home. Remember, it is the market that dictates the value of a home, not me, not the owner, and not the other agents. The home, whether in Big Bear or anywhere else, is only worth what the market will pay. The market in Big Bear is being driven by the bank owned, REO properties and if you want to sell your own cabin in Big Bear, you need to price your home accordingly. If you price your home so that it stands out as the best deal out there in comparison your competition, then the place will sell.
Sellers are very proud of their homes and it's a hard pill to swallow when you are forced to sell your home for less than you paid for it and for less than you feel its worth. This is the reason why I ask a seller why he is selling in this market. This is not a market to see "what if". This is a market where if you chose to sell your cabin, you need to price it right and not be afraid to reduce the price if your Realtor suggests that you do it.
For more information about Real Estate in the Big Bear Valley, send me an email at tony@tonycard.com or call me at the office, 909 866-3481
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