Raining on the parade

By
Real Estate Broker/Owner with Exit Realty Achieve

Yesterday it rained on the parade. It was pouring as we trudged through puddles and up to the door of the SELLER. We huddled under the umbrella as we waited for him to let us in to escape the downpour. After a short tour of the house and a conversation at the kitchen table we found the situation soaking wet and lacking sunshine of any sort.

                                             

Turns out the seller has moved out of the area. He is working in Jersey and his house has stood vacant for some time. He has decided that now is the time to sell and free himself of the burden of home ownership.

The inspection of the home revealed that the lawn has turned into a hay field. The floor plan is somewhat of a challenge (to say it kindly) and the home is starting to show signs of deferred maintenance.

We pulled the comparables and were armed with information we had studied closely. We used our best tactic to talk through the sold comps, the appraiser's view of value and then tried to get the seller to see for himself where the property should be priced. After some discussion the seller suggested the home by priced at $400,000. Shall I mention now that the comps supported $250,000 at best? We brought out more ammunition and discussed numbers again. The seller revealed he bought in about five years ago at 266,000 and has since put 100k into the property. He did not want to lose money. The situation looked more and more grim and the thunder outside merely added to the overcast feeling of the meeting.

It was now time for the big guns! We brought out our Steve Harney information. Steve just wrote in an article "There is a large volume of houses coming to the market at discounted prices. The demand for housing will be flat throughout the year. An increase in supply and a leveling off of demand will create downward pressure on prices. Buyers might want to wait until the ‘sale' starts. Sellers might want to sell before the competing inventory increases." We discussed the shadow inventory, the wave of foreclosures looming, the home owners in distress and those walking away. We discussed selling before the "sale" starts.

As agents we had previously promised that we would be educators and this evening was our best chance to shine. We communicated honestly why we felt it was in his best interest to sell now or plan to wait a few years. We showed the graphs, charts and quotes. The information was flowing and then low and behold the seller spoke. And he said "I want to wait." Now, it seems, was not the time to sell for him. Wait? Wait for a few years then it is. We left without the listing. Happy, that we did not set him up with an unrealistic expectaion. No sense taking the listing at the price point he wanted. We will be able to help him with the rental of the home now instead.

As we said our good byes and headed out the door, the rain stopped and the sky brightened up. There is hope for a sunny day tomorrow and maybe a new parade.

 

Serving and Supporting the Community

EXIT Realty Achieve

956 West Jericho Turnpike, Smithtown, NY 11787  631-543-2009

www.EXITTown.com

Comments (4)

Robin Dampier REALTORĀ®
Coldwell Banker King - Hendersonville, NC
Hendersonville & Western NC Real Estate Source

A great episode of how to do the right thing for all parties involved.  Agreeing to accept what is know to be a overpriced listing is an act of futility where everyone loses.

Sue of Robin and Sue

May 19, 2010 04:35 PM
Dan Edward Phillips
Dan Edward Phillips - Eureka, CA
Realtor and Broker/Owner

Very nice blog on a very important subject.  Nice work!

May 19, 2010 05:13 PM
Daniel Olsen
Exit Realty Achieve - Smithtown, NY

Susan, nice Job educating the customer. It's better to let it go then spend your time on selling a home based on unrealistic expectations.

May 21, 2010 06:29 AM
Arthur Hasher
Exit Realty-Realty Place - Sun City, AZ

Susan, I agree, but on the other hand, may be some sellers don't hear us talking. They want to list unrealistically. Should we list it and reduce the price later? I think the key is motivation.  Are they motivated?

 

May 31, 2010 02:07 AM