It is a Buyer's Market, have we bothered to tell our sellers?

Great post, Kimberly. While the sellers have "heard" it, as you so aptly point out, they probably have not been told, in detail, the implications of what this might mean for them and ways to deal with it. How about mortgage buydowns instead of a huge price reduction, as one example. Keeping them informed regularly of any changes is so important, especially where markets continue to shift.

Jeff

Have you sat down with your sellers and talked about assisting buyers with closing cost, paying for home warranty's or  taking an offer even though it may not be the ideal, but it is nonetheless an offer? Have we told them their home is one of thousands to choose from and the buyers are looking?

Forget the gimmicks like paying closing costs, warrantees, plasma TVs etc. Price is king. Price is the primary deal maker or breaker right now.

You want to sell? It's simple: Price the home within the bottom 1% of all comps. Not the bottom 10% or 5%, the bottom 1%. Buyers have hundreds of homes to choose from, literally. Inside the bottom 1%, you'll get traffic. You see real buyers with real money. Above 2-3%, have a seat, take a nap, relax, you may get a tire kicker or two stopping by every now and then.

And, surprise! That $50K upgrade you bought with the house, well, it's not worth an extra $50K. That granite countertop and hardwood floor and stainless fridge aren't special when every other comp also has them.

My realtor acquaintances are walking away from sellers who won't price in the bottom 1%. Their attitude is "Why bother?" They have their hands full with traffic to the sellers who are down in the 1%. Unrealistic sellers only waste their time.

Good luck, Kimberly!

From what I've read Ft. Myers is rather volatile these days.

One of the problems is NAR's ads that say "Now is the time to Buy and Sell"

Kind of like Merrill Lynch saying. "Now is the time to buy and sell GE stock"

2 of my listings are very aware of the buyers market. However, they are of the breed that still believe that their home is worth what it was 2 years ago. Here is how I have it handles, it may not work for all, but it has worked for me because these 2 people aren't in a particular hurry to move, but need to within the next few months because they have purchased other properties. Luckily, their time-lines gave me plenty of room to start!

I worked the market analysis and explained the "average listed" and the "average solds". It's ok to be in the ball park of average listed at first to test your footing, to find out if you will even show in that range. But if we sit on the market for a month or even 2 weeks, and no one calls, thats the indication that buyers are expecting a lot more "house" for their money. It's not an insult to you, or your home, its just what is happening right now.

My people, young or old, seem to understand the concept of testing the market, stretching their time-lines, and seeing for them selves what could happen. This way I am not telling them their home is over priced, the PUBLIC is telling them they are over priced!

In that respect, I have reduced both homes to have great "competitive edge". My premier home was set to reduce by 20k this week, and I would renew the listing with a new RMLS# to freshen it up. Looks like I don't have to though! I am expecting an offer this afternoon, and from what I understand it will not be too far under asking.

I have to agree with Robert on this one.  There are so many new home incentives in Las Vegas and Chicago right now, it's hard to even keep track -- especially if you don't use Salestraq.

With so many homes, you want to be priced in the bottom 1%.  Our experience shows that buyers will not make it to the 12th highest priced home on the price range that meets their criteria.  Incentives such as closing costs, etc.. will be negotiated by a capable buyers agent anyways.

Denial is the word of the month in my practice. Sellers believe the reason their home hasn't sold is everyone's fault but their own. I maintain the simple notion that wherever the problem may lie - buyer's market, poor location, too much inventory - it can all be cured by price.

 Wake up sellers! Lower your price, consider concessions and the buyers WILL come.

Plasma TV's may be a "gimmick" however, closing costs for the first time homebuyer is as real as it gets to me. 

Price reductions are as real as it gets. If the seller's willing to pay $20K in closing costs, have them reduce the price by $20K instead. You'll get a lot more traffic.

If a buyer doesn't have closing costs, that's a big red flag that they're deadbeats. And if the seller is paying the buyer's closing costs without telling the lender, you are all on thin ice. That's arguably mortgage fraud.

Perhaps in your neck of the woods first time home buyers have 7,000 for closing costs.

A buyer without closing costs to cover the transaction should not be buying a house. If they can't afford $7K for closing. how on Earth can they afford property taxes, insurance, repairs, upkeep? What happens when the roof needs repairs?

As an ethical realtor, which you appear to be, you should be asking these questions. Why are you trying to put deadbeats who can't even pay closing costs into houses? Tell them to save their money and come back in 6-12 months. Prices aren't going up in Ft. Myers. That $300K home will be $260K-$270K this time next year. Wouldn't yuo feel better if they came back next year, better qualified and then bought?

Don't be "that Realtor" who places closing the deal above morals. We already have too many of them.