As a Realtor in the North Dallas suburbs, we were pretty fortunate to be one of the last large metropolitan cities in the nation to feel the impact of the recession. We have also been fortunate to feel the rebound happening pretty rapidly all across the Metroplex. However, going into 4th quarter, 2009, I am a bit wary that we could have another wave of foreclosures caused by delinquent mortgages in Collin County. 96 banks have failed so far in 2009. Some people have confided in me that they are barely hanging on. We remain cautiously optimistic, but with emphasis on the caution.
We saw a good amount of activity this Summer/Fall in Prosper. If you are in the area, you couldn't miss the signs going up and coming down. Homes were selling AND leasing. Leasing was a relatively new concept to our area, but the agents quickly grasped that we had solid buyers who were only looking for leasing opportunities until their current homes sold. Thus, in many cases, we were leasing to the prospective buyer. Being open to letting the market dictate whether the home would sale or lease was one reason why we saw the activity in our market improve.
I suggest Fall/Winter 2009 is another quarter or two where we should consider listing for sale or lease and let the market dictate the direction. For those who might be delinquent in mortgage payments, a lease can solve the immediate problem of making the mortgage payment and buy the owner time to get current. Our buyers seem to be wanting to close quickly. They had their own homes on the market in other states for so long, that by the time they reach us, they are weary and want this purchase transaction completed in 2-3 weeks. They want to be done with the whole process. They are ready to get settled and get on with their lives.
We do have some issues happening in our MLS that you need to know about:
1. Z-sales are undisclosed sales and do NOT mean that the seller got their full asking price.
2. Not every Z-sale is actually identified as one in the MLS. What are the odds that a half million dollar
home listing is selling for half a million dollars right now? If it looks to good to be real in a buyer's
market, then it is too good to be real. Those were negotiated sales.
3. These Z-sales and undisclosed sales have caused an inflated value in our comps in most
neighborhoods. Sale comps rule in a buyer's market, and the house must be able to appraise.
Don't just look at the ACTIVE listings. Those are your competition. But, really analyze the SOLD comps
for the closest homes to yours, and price the house right.
4. If you are listed, are priced above $350,000, and are only getting 1-2 showings a month, you are not
positioned properly for the showing volume we're seeing in Prosper. Don't blame that on the economy.
Adjust your strategy, align with sale comps, and start getting 1-5 showings per week. If you aren't
getting steady and predictable traffic through the home, your chances of selling in 2009 are slim.
Be REAL, and be SOLD/LEASED.
Have a blessed day!
Ronda
Comments(0)