What's Up with this Market Place?

By
Real Estate Agent with Edina Realty

OK, You tell me what you want to talk about- I'll share my thoughts- Isn't that what Blogging is all about?

 Recently the most asked question I get is what is going on with this market place- why is it taking so long to sell my home- or should I even try?

I still say the answer is YES! 

Here in Metro Minnesota- we have experienced appreciation rates as high as 12% annually.  And yes, I'm a home owner and I too enjoyed the equity in my home skyrocketing each year.  But all good things have to eventually come to an end.  National appreciation rates are more like 5% and we have had an exceptionally good run.  Housing prices were reaching un-affordable levels for most of the average home buyers.  Our market needed this correction.  Your investment is not failing- it is just flat at the moment.  I always tell clients to never 100% finance your home- EVER! If you already did- and now your upside down- well, this is what happens when you use up all your equity.  Your home did not loose it- you used it for other things.  Your home still gained value at an incredible rate on your investment over the last 3-20 years.  Don't blame the house for your financing errors. 

OK, with that said- If your smart- and you would still really like to move- you just have to be realistic. The days of Sellers asking incredible prices for homes and getting into multiple offers are over for now.  The good news is whatever you feel you are loosing on your home sale- we can make it up on the deals being offered on home buying- It all evens out in the end.

When will this market get back into shape?  When consumer buyers return to the market. The Fed's are trying to stimulate the mortgage market, and interest rates are really historically very good.  You can't wait for the "bottom"- it's not going to show itself- the time is now.  When the "first time/low end" buyers return and start purchasing- then everything migrates uphill and things will get back on track.  With all the press on this subject and the "scary" news media- we have to focus on instilling confidence in the first time buyers and the rest will take care of itself. 

The problem I am having is- my first time home buyers are overwhelmed at the amount of choices.  They can't seem to commit to one house- when 3 more come on every day. I am spending much more time with each one and showing many more homes than is normal.  I can't seem to get them to commit. If anyone has any ideas on this- I'd be happy to listen.  I have never been a hard closer- and it's tough to keep to the philosophy of the houses sell themselves when there are so many to choose from.

Just my thoughts

Comments (10)

Christine Hart Howlett
Painesville and Eastern Lake County - Painesville, OH
Keller Williams Greater Cleveland NE

One suggestion would be, when they find a house they really, really like, ask them how they would feel if it's no longer available when they finally decide to make an offer. 

I've had similar situations.  The buyers think they can take their time.  But, if they like the house, someone else probably will like it, also.  When they lose one house because they waited too long to make an offer, trust me, they won't procrastinate again.

Mar 16, 2008 04:25 PM
Lori Melstrom
Edina Realty - Minnetonka, MN
Realtor, GRI, Edina Realty

Thanks Christine,

I have one couple who has lost 3 times- they really don't seem to care.  They really are not motivated as so many homes work for them- there will always be another.  They are frustrating the heck out of me. Maybe the 4th time is the charm?

Mar 16, 2008 04:45 PM
Dorene Shirley
The Mortgage & Property Connection - Campbell, CA
Silicon Valley Real Estate

Lori - Welcome to the Rain, make sure that you browse the site and become familiar with everything this site has to offer.  The more you browse the more you will learn.  I have found this site to be really helpful to me.  If you have any questions, please don't hesitate to email me, I will do whatever I can to help.

http://www.doreneshirley.com/

Mar 16, 2008 04:47 PM
Ted Mackel
Keller Williams Realty Simi Valley - Simi Valley, CA
Simi Valley Real Estate Agent

Lori,

Welcome to Active Rain!!!  Thanks for subscribing to my blog.  Make sure to really dig through the groups and the blogs.  I cant believe the great stuff I am finding.

Mar 16, 2008 04:58 PM
Lori Melstrom
Edina Realty - Minnetonka, MN
Realtor, GRI, Edina Realty

Thanks for the warm welcome Dorene,

I'm already addicted! I have been here reading for 4 hours already. Some very good content and thoughts from all over the country.  There is a lot to learn, read and do.  I'm very excited about this site. I was referred by my Nephew in Colorado- and he was right- this is right up my alley!

Thanks again- I look forward to reading your blogs as well!

Lori Melstrom - Minnesota

Herbeck Homes

Mar 16, 2008 04:59 PM
Keith Elliott Jr
KEIRE Realty Group - Manassas, VA
Principal Broker/Owner

Hello Lori,

Welcome to Active Rain and congrats on your first post! The opportunities to learn and network are incredible here. Best of luck to ya!

-Keith

Mar 16, 2008 05:01 PM
Christine Hart Howlett
Painesville and Eastern Lake County - Painesville, OH
Keller Williams Greater Cleveland NE
Lori, regarding the couple that has lost three times, maybe it's time to cut your losses ansd move on.  Sometimes, we spend all our energy (and thoughts) on people who prevent us from concentrating on viable prospects.  It's very difficult to walk away from people who might eventually buy,  As you said, though, they are not really motivated.  You are a professional, your time is too valuable and they are dragging you down.
Mar 16, 2008 05:31 PM
Brad Andersohn
Retired Executive Director of Education at eXp - Boulder Creek, CA
ActiveBrad - 707.646.1876
Hi Lori,

I see this is your first post on Active Rain.  Congratulations!!  I just wanted to welcome you to a fantastic Real Estate Industry Network!  Welcome aboard, I hope you'll continue to Blog, and invite others.  

I’ve added a link to a post called, “NEW MEMBERS – Start Here” that will hopefully get you up and running with the least amount of effort, and also help you to navigate around Active Rain more efficiently.

I hope you'll find this to be a useful post in helping you get started. 

Again, welcome to Active Rain, the best place to start, and have a Blogging experience!

Good Luck to you and your business!  B-)
Mar 17, 2008 03:22 AM
Gena Riede
Riede Real Estate, Lic. 01310792 - Sacramento, CA
Real Estate Broker - Sacramento CA Real Estate (916) 417-2699

Lori,

Great that you have found your voice here on Active Rain. Great article with a good question. Unfortunately, motivation is something that you need to discover with your home buyers and then asking them if it would bother them if they lost out on a particular house. If it wouldn't then it's not their dream home. There is no emotion involved. You need to find the one where there is emotion and it may take losing it before they get the picture, unfortunately.

One of the things I like to do with my home buyers when their eyes light up, is to sit down in the kitchen and just talk. Let them feel comfortable and get an emotional tie with the house. It's either there or its not. I don't do it on every house only the ones that they show they like.

Good luck. They'll find one...maybe if they have to follow you and spend the dollars on gas, they may find the one that they love, sooner.

If you have any questions about Active Rain or how to get around feel free to call.

Mar 19, 2008 02:50 PM