Articles with housing statistics continue to be published almost daily. The Media blitzes us with reports indicating how difficult it is to sell $700,000 homes in places like California. They usually paint a bleak picture and often companies are responding in what they see as creative ways, but what I see as adding to their negative image. Some brokerages today are resorting to giveaways from rebates, cruises and even new cars all in hope of attracting buyers. I've seen email from other agents offering incentives to sell their home from football tickets to extra commission all for a full price offer. Hmmm let's think about that a full price offer in today's market all in the name of football. I think it's cheesy and does a disservice to any potential buyer not to mention the seller. I'm just not sure I'd want someone representing me offering these types of incentives. I think it often distracts and keeps some buyers away by giving the impression that something might be wrong with the home.
The thought is that hey you may not want this half a million dollar home but maybe a $5000 cruise will entice the buyer to enter into a $3000 monthly mortgage. Or better yet a new car with high registration fees just might get buyers into that $4000 or higher monthly payment. This is why stereotypes of agents as car sales people trying everything in their power to make the sale persist. Could it be that honesty, integrity and trust go out the window when there's a home to be sold?
Good offers are usually made based on the comparables in the area, the location and how long the home has been sitting on the market. This is where we as agents can analyze the market, the immediate subdivision; outside the area, trends and property history to put forth a good offer that feels right and makes sense to the buyer.
A home priced right, priced current compared to the comparables in the same immediate area should still be sold in a reasonable amount of time. That reasonable time will in part depend on how long homes have taken to sell in the immediate area. For the most part gone are the days of 2004 and 2005 where homes often sold within a day or a week. However, if homes are priced right and marketed properly by the agent it should sell, even if it does take a few months time. It's the #1 issue homes not being priced properly and sellers not willing to negotiate with buyers. Sometimes it's the sellers refusing to open their eyes to the comparables and not listening at all to their agent. At times the agent adds to this by not indicating just how long it's going to sit when priced improperly and forcing through a series of price reductions taking months of heartache before the home is sold. I've seen this often by discount brokerages that take the listing at a very high price and watch it sit for 6 months or longer before their client goes with another agency that reduces the price to match the comparables and low and behold it then sells quickly. Let's not compromise what we know is right and take a listing just for the advertising buzz and potential new calls. Price the listing right or walk away and let someone else deal with the reductions and heartache. Advise the client properly and look out for their best interests!
One example I have is of a home that is located on an extremely busy intersection with traffic passing it by night and day 24/7. The old home that stood there was torn down and someone decided it would be a wise investment to build a brand new home and try to get $450,000 for this home despite other homes going for $175,000 to $300,000 in the immediate area. I've watched a few reductions and the advertising campaign but still it sits. Location never warranted this type of home. However, priced properly for this area this home will be sold. It's just a matter of time but why waste the months in figuring this out.
Buyers and sellers let's come together in this buyer's market and review the comparables, location and market trends to have a good offer made and accepted. Sellers need to understand that this is a new market and listening to honest agents that are showing you actual comparables will help you set the price properly. Don't go with just any old ‘yes' agent that makes promises or says they can get it done at whatever price you want to market the property. Honesty, integrity and trust on both sides are urgent. Pricing properties correctly in today's market will lead to success and happiness for all parties.
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