Snow on the way for Chicago, folks!
Heeyyy . . . what are you complaining about?
As the Virtual Roller Coaster that constitutes today's Real Estate Market rolls on, and on, it seems hard to remember those days of relative, predictable calm of just a couple of years ago.
This time of year - a few weeks before Christmas - many Real Estate Practitioners did not yet have sales and closings booked for the following January, and beyond.
But you knew they were coming. You just knew it. And, always, like tomorrow morning's sunrise - business came, if you worked it.
Prices a bit high on your home, or your listings? Not to worry - the New Year would bring renewed interest. Predictably!
Then came 2008. And '09. Lackluster sales in January, February, and March for most Real Estate Pros I know here in Chicago and the Chicago Suburbs. Slow business in April - a bit of a pick up as the weather got warmer.
For our Real Estate Team here in Chicago, our business has nearly tripled versus last year. But before you write to offer us hearty congratulations - consider this: 2008 was the worst year we had in Real Estate since the early 1990's. Back then, average home prices here were below $165,000.
And, back in the day, overhead, and expectations, were quite a bit lower.
How were we able to engineer a listings and sales turnaround in 2009? One thing, mainly -
AUTOMATIC, PRE-APPROVED PRICE REDUCTIONS ON OUR LISTINGS!
Something so simple. So logical! But . . . IT WORKS!
Start by pricing at market - no messing around. Lower the asking price in roughly 3% increments until the house sells.
Some sellers ask, "Will my list price eventually be ZERO?" I don't think so! Indeed, this strategy has resulted in several multi-offers this year, and even a couple of overbids!
Sellers who change their mind and get cold feet over future scheduled, already-agreed-to price reductions?Realtors . . . perhaps it is time to part company with them! Such sellers cannot win, nor can their Listing Agents or Teams!
Now, wait - what if my clients cannot afford such a strategy, due to low equity. Or . . . perish the thought . . . lack of the motivation to sell?
Well, if that's the case . . . don't sell! Stay put!
You can't create a market solely because you "wish" a certain price. Get real!
Or, if you MUST sell for economic reasons - first, swallow hard. Then begin a short sale! Quickly, if necessary - rather than denying the obvious and running yourself or your client into the ground using false hope.
Real Estate Practitioners - tempted to list a house at a too-high price just to be empathetic to your clients? DON'T! It will do them no good, and waste your own time and money.
And . . . unsold listing inventory don't help ANYONE - the seller, the marketplace of buyers, or the Real Estate Practitioners themselves. And these unsold properties only add tinder to the current problem of bloated inventory, in parts of Chicago, and in other markets across the U.S.
You think I'm a hard guy? An SOB? Insensitive?
I dunno . . . maybe!
But, deep inside, YOU KNOW I'M RIGHT! Yes?
Let us know if you agree!
DEAN & DEAN'S TEAM CHICAGO
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