I Know It Hurts, But What You Need or Want from the Sale of Your Home Doesn't Matter

By
Real Estate Agent with Realty Executives Integrity R.E. Broker 55289-90

money

It seems like things are getting tougher and tougher in the world of real estate. More and more "for sales" are popping up, interest rates have creeped up a bit, the buyer tax credit is nearing its end, and short sales and foreclosures continue to spatter the inventory. And yet, it is still difficult for some to accept that no one is immune from the rippling effects of these conditions.

Those of us who are in the business of residential real estate sales hear it all the time. "I need to net this amount of money, so I need to price my house here." If only it worked that way. But it doesn't. It simply doesn't.

In this complicated market, prices continue to drop. In our area, we rarely see a home sell for its assessed value anymore, much less fair market value. So if a seller is selling within a couple of years of buying and has made minimal improvements, if any, chances are they will not be making a profit. No matter what is wanted or "needed" to net from the sale, the buyer will determine what the home's value is.

Remember that today's buyers are pretty savvy -- they know what you paid. They know what the assessed and fair market values are. They know what comparable homes in the neighborhood have sold for. And they know that home values have fallen over the past few years and unfortunately continue to do so.

If your goal really is to sell your house, you must price it appropriately. A buyer doesn't care how much you need or want to walk away with at the closing table. So price it to sell, not to sit.

 

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Re-Blogged 3 times:

Re-Blogged By Re-Blogged At
  1. Lyn Sims 04/16/2010 10:32 AM
  2. Margaret Goss 04/19/2010 01:59 AM
  3. Shanna Hall 04/25/2010 09:50 AM
Topic:
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Groups:
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The Lounge at Active Rain
Wisconsin Homes for Sale
Shorewest Realtors
Tags:
pricing a home
home values
home selling
seller tips
homebuyer tax credit
peggy wester

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Rainmaker
207,960
Peggy Wester
Realty Executives Integrity - Grafton, WI
Real Estate Agent Ozaukee & Washington County

Pat -- Amen to that. If nothing else, this market is making me more thick-skinned than I ever thought I'd be!

Apr 16, 2010 01:56 PM #11
Ambassador
3,681,846
Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

Good post, Peggy!  And you are so right about what one needs to net not being what drives value!

Apr 18, 2010 09:33 AM #13
Rainmaker
207,960
Peggy Wester
Realty Executives Integrity - Grafton, WI
Real Estate Agent Ozaukee & Washington County

Patricia -- Why is it everyone "gets it" except those that really need to get it?? :)

Apr 18, 2010 11:08 AM #14
Rainer
174,571
Betsy Schuman Dodek
Washington Fine Properties - Washington DC Area Real Estate - Potomac, MD
SearchPotomacHomes.com

The concept is basic but some Sellers just don't want to hear it???

Apr 18, 2010 11:16 PM #15
Rainmaker
403,707
Claudette Millette
The Buyers' Counsel - Ashland, MA
Buyer, Broker - Metrowest Mass

Peggy:

A home is going to sell for market value, no matter what the owner paid for it, owes on it or the lovely color they have painted it.

Apr 18, 2010 11:40 PM #16
Rainer
422,958
Peggy Chirico
Prudential CT Realty - Manchester, CT
REALTOR® 860-748-8900, Hartford & Tolland County Real Estate

Good point, Peggy - I often want to ask such sellers how they would feel if they were told that the buyer can only afford so much of a mortgage because they HAVE to pay cash for the kids' education - exactly, who cares?

Apr 19, 2010 12:51 AM #17
Rainmaker
207,960
Peggy Wester
Realty Executives Integrity - Grafton, WI
Real Estate Agent Ozaukee & Washington County

Betsy -- I have never had the struggle I'm having now getting sellers to understand this idea. Very frustrating.

Claudette -- Amen!!! Would you mind calling the seller I'm having this conversation with right now and telling him that???? ;)

Peggy -- That is an excellent thought -- I actually think I'm going to try that with this particular seller. Wish me luck!

Apr 19, 2010 12:57 AM #18
Rainer
233,428
Mike Yeo
3:16 team REALTY - Frisco, TX

Excellent point. If only seller would understand. Sometimes, we have to remind them the principal of supply and demand, how that impact the price and hence what they can net instead what they want to net.

Apr 19, 2010 01:09 AM #19
Rainmaker
207,960
Peggy Wester
Realty Executives Integrity - Grafton, WI
Real Estate Agent Ozaukee & Washington County

Mike --  Another good point -- supply and demand. I've used that in the past, as well, but not always with success.

Apr 19, 2010 01:14 AM #20
Rainmaker
571,718
Bill Gillhespy
16 Sunview Blvd - Fort Myers Beach, FL
Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos

HGi Peggy,  That statement by the seller is the first and maybe the most important red flag you or I will hear.

Apr 19, 2010 01:55 AM #21
Rainmaker
1,094,227
Margaret Goss
Baird & Warner Real Estate - Winnetka, IL
Chicago's North Shore & Winnetka Real Estate

I agree with you 100% - if only sellers would listen to us.  I've reblogged your post - thank you!

Apr 19, 2010 02:14 AM #22
Rainmaker
516,438
Russell Lewis
Realty Austin, Austin Texas Real Estate - Austin, TX
Broker,CLHMS,GRI

Great post about reality and setting realistic expectations!

Apr 19, 2010 03:20 AM #23
Rainmaker
689,450
Cynthia Larsen
Cotati, CA
Independent Broker In Sonoma County, CA

I've got one of those potential clients right now. I'm not even sure if I'm going to take the listing.

Apr 19, 2010 04:32 AM #24
Rainmaker
207,960
Peggy Wester
Realty Executives Integrity - Grafton, WI
Real Estate Agent Ozaukee & Washington County

Bill -- You are right on -- definitely a red flag.

Margaret -- Thank you for the re-blog!!

Russell -- Thank you!

Cynthia -- I've got a few of these clients right now and am feeling very defeated today. Sigh...

Apr 19, 2010 09:09 AM #25
Ambassador
534,349
Kate Elim
Dockside Realty - Spotsylvania, VA
Realtor 540-226-1964, Selling Homes & Land a

Hi Peggy...This has never been more true than the past couple of years.  However, tellling clients that and getting them to "understand" it is not so easy.  Everyone thinks there property is special.  Around here sellers often tell us that they don't need to sell.  My answer is that no one needs to buy their house.  Harsh but true.

Kate

 

Apr 19, 2010 09:31 AM #26
Rainmaker
207,960
Peggy Wester
Realty Executives Integrity - Grafton, WI
Real Estate Agent Ozaukee & Washington County

Kate -- I have to admit I'm pretty worn down by the resistance I've been getting lately. I just emailed another selling explaining that the "truth" is difficult for any seller to digest regardless of how long they've owned the property, the property's condition, their reason for selling, the balance on their mortgage, etc. We'll see what response I get...

Apr 19, 2010 09:36 AM #27
Rainmaker
631,213
Nancy Conner
Olympia, WA
Olympia/Thurston County WA

It can be really difficult for the seller to face the truth - but absolutely essential that we are straight with them anyway.  Buyers just don't care AT ALL what the seller is hoping/needing to net, how much they've put into it, how they think it is far nicer than the identical house down the street etc etc etc.  Most buyers I am seeing these days are way more worried that even if the price seems fair to them they might be overpaying if the market drops more - they almost want to build in a "cushion" just in case...

Apr 19, 2010 11:22 AM #28
Rainmaker
207,960
Peggy Wester
Realty Executives Integrity - Grafton, WI
Real Estate Agent Ozaukee & Washington County

Nancy -- I'm hoping somehow gives me a "magic script" to get sellers to understand this. Keeping my fingers crossed!

Apr 20, 2010 12:41 PM #29
Rainmaker
177,696
Linda Greco Rich, ABR, SRES
Exit Preferred Realty - Bel Air, MD
Harford County Specialist

Peggy, It's a hard pill to swallow for sellers who bought their houses in the last 10 years.

Apr 22, 2010 12:49 AM #30
Rainmaker
207,960
Peggy Wester
Realty Executives Integrity - Grafton, WI
Real Estate Agent Ozaukee & Washington County

Linda -- It sure is. I'm finding it's even hard for some who bought 15+ years ago!

Apr 24, 2010 03:08 AM #31
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Peggy Wester

Real Estate Agent Ozaukee & Washington County
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