Carlsbad Sellers - Some Get it, and Some Do Not

It’s a tough market out there for Carlsbad sellers:

• lots of inventory (i.e., competition)
• a greater presence of short sales and foreclosures that impact property values
• buyers taking their time and looking at everything in sight in their price range
• folks waiting for prices to drop further
• media headlines screaming about the horrors of the housing market and making dire predictions
• lower prices in many areas than a year ago, or even months ago
• some are now carrying two mortgage because they bought a new home, thinking theirs would sell rapidly and for top dollar

The list goes on and on.

But the reality in many areas is that despite the changes that have occurred and the competition, homes ARE selling, just not at breakneck speed.

Some sellers get it, but some do not.

And those that don’t perhaps think the buyers won’t figure it out. Hah. Most buyers these days have a good grasp of when someone is trying to pull the wool over their eyes, and they are NOT buying it. Plus they have too much to choose from.

Case in point. I have been previewing homes for some out-of-area buyers who have cash to buy. I’ve tried to get into one home that I am confident they would like TWICE – the first time was not a convenient time (but they only ask for 1 hour notice and I called well in advance); just a day ago, same response – today is not a convenient time. Now, these folks have had their home on the market for 180 days where average market time is about 68 days (and this is the 2^nd agent), a big price reduction, and they’ve received two offers, one that was at the bottom of the price range but they still said no. Their agent is frustrated and ready to say good-by when the listing expires. They want to move up to a new subdivision that is more expensive. Doesn’t sound like that is going to happen very quickly. Maybe never. Why bother?

There are a number of Carlsbad home sale situations where folks SAY they want to sell, but their actions say no, they don’t. Multiple contracts going on for months and months, comparable homes selling around them. Hmmm. (read Carlsbad Sellers – Don’t Be Saboteurs). Our inventory is larger due to these unmotivated sellers – no clue how many, but it’s more than 1 (right now almost 10% of the Carlsbad homes for sale have been listed for more than 6 months where the average DOM is 2 months - is this that group?).

• In contrast, I have a fairly new Carlsbad listing that has not moved yet and things have shifted since the property was listed and the clients, when presented with the new market data and other intelligence, quickly agreed to a price reduction…a GOOD one. They get it!

• I just took a new listing where the seller has already indicated a desire to sell quickly because of finding a home they want to buy, and they “don’t want to be greedy, just get what is reasonable so I can sell quickly and move on.” This seller gets it too.

To a certain extent we can help our clients “get it” by understanding our local market, the conditions that impact it, and conveying this information effectively so that the home gets priced appropriately, and presented to the market in as positive a manner as possible by proper preparation.

We must be responsible and tell them the truth, not what they might like, or hope, to hear. If we don't we are doing THEM a disservice as well as ourselves. And we are not acting professional and ethically.

Unfortunately some sellers "get it" but their agents do not (read Is Your Home Being Sabotaged by Your Agent?).

Understanding the seller’s motivation is key – for us and them. Not only should we understand the real reasons for selling, but they must too. We cannot change that motivation, nor create it if it is not already there.

The right motivation will truly allow sellers to “get it.” If they don’t “get it,” they probably should get out.

And we should not help them get in.

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