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Ask yourself, when will the market change? Buyers market to sellers market.

By Ken Nimmo

Real Estate Agent with National Real Estate of Prescott

August 12, 2007 04:50 AM

Sometimes things happen that some of us see and some don't. We all new the market will change from sellers to buyers and back to sellers again. How many Realtors were ready for the market to change as fast as it did. The Realtors have seen the rapid flip flop of the market and now must counsel both the buyers and more importantly the sellers of todays market. Unfortunately none of us have a crystal ball as to where the bottom of the market might be. So we must counsel our sellers that price is of the utmost priority in todays market. If the market continues to grow in inventory as it has had over the last 12 months then sellers must decide on where they want to be price-wise. Here are some placings.

1. Price at market, use comps and solds in the area. ( seller wants to sell but doesn't have a lot of motivation)

2. Watch the market and see if any homes are selling, if home priced less sells then lower the price of their property. ( Motivated seller trying to get as much as possible for their home and follows the market down but seems to be just out of the showing range)

3. Be priced at the lower end of the price range for your area and home size. (Seller is motivated and wants to beat the price reductions first and not follow the market.)

Counseling our buyers, Now remember a lot of sellers got caught in the incredible prices of the prior 18 months and just couldn't believe that the market was turning. Some of those sellers lost, took property off market or sold jsut in time. Well now the buyers must analyze what is happening. Of course buyers want to get the best deal out there. We need to guide them in the direction of what there goal is keep a diligent eye on the ups and downs as it could change just as fast back to a sellers market. So we must help the buyer find the property and counsel them on how to price an offer for their deal. Make sure you ask your buyer some prudent questions like these;

1. If we find a home that you just love are you ready to make an offer today?

2. We have found the home you want, now here are the comps in the area and the market does seem to be on a downward trend , so what would it take for you to make an offer today? Where do you want to be on your price?

Buyers are now in a position to ask for seller participation in closing and mortgage costs. Ask for them!

The time of putting a sign up and having buyers fight over the homes are long past, We as Realtors must work harder to earn our money.

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DDR Realty

DDR Realty - Newburgh, NY

Orange County NY

Good advice and is really Real Estate 101. The type of market is really driven by the local conditions. Some areas of the country are experiencing seller market conditions.

Aug 12, 2007 05:04 AM

Patricia Kennedy

RLAH@properties - Washington, DC

Home in the Capital

We all need to remember that old rule of real estate: What goes down must come up!

Aug 12, 2007 05:06 AM

Ken Nimmo

National Real Estate of Prescott - Prescott, AZ

Over the years Real Estate will eventually go up. So how do you convey that to your buyers. In our market the prices seem to be dropping on a daily basis. On any given day you can see from 10-100 price changes. Most are going down. A seller if they have the means can wait it out. However how long does a buyer need to wait to find the bottom? If they are lucky enough to find the bottom are you as a Realtor going to be able to give them the advice of buying right then?

Aug 12, 2007 05:30 AM

New Jersey Real Estate James Boyer Morris, Essex & Union County NJ Realtor

RE/MAX Properties Unlimited, Real Estate - Morristown, NJ

Keep praying. It can only get better soon it only can get better soon, it only can get better soon.

Aug 12, 2007 05:45 AM

Don Diltz

Coldwell Banker - Menlo Park, CA

DRE:01204965

The biggest fear the buyer has is that (s)he will buy today that will make them look stupid in the future (and they could have gotten the house for less if only they had waited). But, depending on the circumstances, if they are planning to stay in the home for some time (and, of course, since it is real estate, the investment horizon should be 3-5 years at least), whatever savings they might theoretically see could be wiped out because they have to wait for the right house to come on again and by then prices may have turned around and, in fact, risen above current levels.

The objective is to have simpathy with the buyers but to keep them focused on their objective, which is to move to a house that best suits their needs.

Aug 20, 2007 12:12 PM

Sherry Armstrong

RE/MAX Property Centre - Ormond Beach, FL

Daytona Beach FL real estate

In my area marketplace, we have about 28 months of invetory, if nothing else is listed. I started talking to friends in my company and out of my company with a slightly crazy idea. If you're in a market like mine, think about convincing sellers who are not motivated to sell to pull their listings off the market. Withdraw them. With 1800 agents in our association, if each agent dropped 2 listings of unmotivated sellers, our market would turn. It would get attention of buyers, real buyers who are sitting on that fence trying to be smart and buy at the bottom of the market. It would reduce the sellers who were trying to "bail out" and leave us with a much more manageable listing inventory. I was upset a few weeks ago when a few listings were pulled but I just couldn't argue with the sellers. I couldn't blame them for withdrawing the listings. They weren't disappointed with the marketing I had done. They were disappointed with the market itself.

The other thing we need to do is to step back and approach things differently. I refer both buyers and sellers to "sitting on the other side of the table" when discussing offers. Try to think like the other party. What is it that they really want, in a transaction.

The next thing we need to do is to start talking like this isn't the end of the world. Real estate will come back but if we're talking like it's gloom and doom, we can't instill confidence in a seller to list their property with us and we can't convince a buyer to purchase this lovely home we've just shown them. If we don't start believing in the real estate market, why should they? Change your mindset and think, talk and live in a postive state of mind. We are what we create. Please, don't tell me the market is bad. You're convincing yourself, first.

Aug 21, 2007 04:01 PM

Pat Hommel

Annapolis Plaza CB Residential and Commercial - Annapolis, MD

Annapolis, AA Co., Md. Real Estate Sales

Ken, Now is a time to find real value for buyers. We can all generate business in this market with that simple reminder. Enough properties to select from, sellers who are willing to pay buyers closing and other costs.

Aug 28, 2007 11:31 AM

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