As seen in The Seacoast Scene
May 19, 2007
Home sales are up in the New Hampshire seacoast!
Do I have your attention?
Good, because while that statement is true, there's a lot behind that statement, and there's a catch or two. Don't sing my praises yet, because I bring you sobering news.
To use a broad brush for all housing, sales are down statewide 6%, and nationwide 8%. This is largely what you see on TV that has caused such a Chicken Little "The Sky Is Falling" perception. In Rockingham County NH, which is where our beloved seacoast lies, sales are UP 5% in the first quarter 2007 as compared to first quarter 2006. My office's home (unit) sales are up almost 21% over the first four months of 2006! This is great news for home sellers in the seacoast.
Now the catch: Prices and values have declined - nationwide, statewide, and locally. It's not what the home seller wants to hear, but it's a fact. Home sale prices in Rockingham County are down 6% year to year from 2006. What does this mean to you?
If you bought a home in the last 3 years or so, your investment has probably depreciated. If you're looking to sell that recently purchased home, reality is that it will probably sell for less than you bought it for. Real Estate has traditionally been a very solid investment over time, but it is cyclical, and we're in a depreciating cycle.
Careful now- a depreciating cycle is not a market crash! SO many people jump to the worst case scenario, that kind of thinking spreads like wildfire, and perception becomes much worse than reality.
So... homes sell in any market. How do you sell your home in this market? There are several significant factors, as you've heard me say in the past, but the single most important factor right now is price.
That should come as no surprise at all.
Homes and condominiums that are priced properly are selling in a reasonable period of time. Those that are priced higher than market sit and languish. If your Realtor has done a market analysis and given you a price range based on market data, why do you argue and insist your home be listed higher?
There are a number of reasons of course, including pride, "expert" neighbor pressure, (admit it!), what you owe on the home, and what you have invested. News flash: None of these factors have anything to do with the market value of your home. You and your neighbors don't determine market value, the buyers do. Beware of a real estate agent "buying the listing" by agreeing to list your home at a value you are comfortable with rather than one backed up by market data just to get the listing.
I wish I could tell you how many times I've spoken to a prospective seller who had done their homework and met with 2 or 3 other Realtors about selling their home... they come back to me saying they trust my professionalism, my company, my team, my marketing capabilities, my strategy for their home sale, only to insist they want to "try" to sell the property at a higher price one or two of the other agents gave them. Pardon me?
Guess what happens in a declining market when you price your home too high to "test" the market. The value continues to decline while you're testing, and by the time you actually bite the bullet and get to the right price, it sells for less than the market value you objected to in the first place. This is called "chasing the market down" and is a losing proposition. You lose money by pricing too high, time and time again.
And you know what the best part is? You blame the Realtor!
I love my job. I'm good at it. I have a recommendation for you this week: If you trust your Realtor, ( and I certainly hope you do!), take his or her advice. We're professionals in a complex business. We can help you get the most for your home if you let us do our job.
As I say, I'm not here to give you a blue sky picture of the market. I give you the facts, and sometimes it's not what you'd like to hear, but believe me when I tell you: It's what you need to know.
Statistics courtesy of New England Real Estate Network, New Hampshire Association of Realtors, and demographer Peter Francese. Used with permission.
Bill Faulkner is a Realtor® with ERA The Masiello Group in Hampton and can be reached at 603.601.1112 or bill@BillFaulkner.com.
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