Emerging from The BUBBLE, a Long & Winding Road

By
Real Estate Agent with Florida Supreme Realty SL514814

A decade has passed since The Bubble burst yet Sellers are still not breaking even to this day. I've recently had three cross my path and it's a journey that's quite uncomfortable, not for me but definitely for the owners. Some of these homes have been on the market for more than a 1,000 days. I don't want them in my portfolio because they're overpriced. Although they are beautifully maintained and condition is near perfect I cannot get to the sale price these Sellers want, nor will any other agent for that matter.

Loyalty is an excellent quality for customers and when your real estate associate can hang on for theTime vs Money duration that's utterly amazing. Don't get me wrong, that attribute is the pinnacle of what an agent seeks most. By the same token, they're not conveying the reality of what needs to be done to sell your home if truthfulness is not made part of their equation.

Have you been on the market more than a year? Longer than that and you need to find some honesty along with that loyalty. The investors are beginning to circle above and throw out low ball offers every now and then. The showings are few and far between! Now is the time for "The Talk". It's somewhat akin to the ones you gave your teens when they stopped asking for your advice. It's not easy, however, it's now necessary.

Here's a sample of what has been experienced by many in this situation. The numbers are going to be different of course but the sequence and results are all relatively the same. At this point the home is secondary and pricing is paramount.

 

How your JOURNEY began back in '05:

February purchased home for $918,000

April '08  listed home for $1,295,000 (realistic value $900,000)

March '09 reduced to $1,275,000

Off Market until 2015

May begin again at $1,200,000 (should have been under a million)

June price drop to $1,195,000 (no one is fooled)

November price drop to $1,150,000 (getting closer)

March '16 down again to $1,060,000

December '16 reduced to $999,999 ( ouch!)

March '17 it's getting real at $975,000

May '17 another reduction to $969,900 ( why bother)

 

NOW you're at $925,000 almost exactly where you began. Five real estate agents later and so much time lost. The true value is within your grasp but it's now at $850,000. All of these associates exclaimed that to you all throughout their listing periods. The facts were ever-present through each of their comparative market analysis reports. Your insistence on setting the price point with disregard to the evidence brought us here. Times have certainly changed in the Real Estate business although one aspect remains the same.

 

“The most valuable real estate in the universe is inside your soul.”
~ Matshona Dhliwayo

 

     
     
     
     
     
     
     
     
     
     
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Topic:
Home Selling
Tags:
selling
associates
marketing
valuation
time
money
loyalty
dollars
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Rainmaker
919,936
Larry Brewer - Benchmark Realty llc
Benchmark Realty LLc - Nashville, TN

Hi Kevin - It's unfortunate that luxury home buyers don't understand that some homes actually don't increase in value. I think it might be a good time for buyers to come in an pick off a few good ones. Have a great week.

Jul 25, 2017 10:19 AM #1
Ambassador
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Belinda Spillman
Aspen Lane Real Estate Colorful Colorado - Aurora, CO
Colorado Living!

Things seem to have finally recovered from those tough years of past.  Hopefully they will stabilize for a bit.

Jul 25, 2017 12:41 PM #2
Rainmaker
1,654,733
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker and Attorney Licensed in DC, MD, VA,

Great explanation of why you have to listen to the market. The market sure doesn't listen to us!

Jul 26, 2017 09:30 AM #3
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3,802,921
Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Kevin- nice walk down memory lane! Unfortunately, some who bought in the early years bought high, and it's a hard reality they have to face. 

Jul 27, 2017 04:52 PM #4
Ambassador
3,802,921
Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

                                Thank you Kevin J. May 

Jul 29, 2017 05:38 PM #5
Rainmaker
4,796,627
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Good morning Kevin.  Sometimes it's just impossible for an owner to come to grips with the value of their home.  Especially when there are some willing to feed their deceptions.

Jul 30, 2017 05:51 AM #6
Rainmaker
3,541,791
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Kevin. The history you present is troubling on so many levels.

Jul 30, 2017 07:35 AM #7
Rainmaker
3,078,127
Kristin Johnston - REALTOR®
RE/MAX Realty Center - Waukesha, WI
Giving Back With Each Home Sold!

I can see why Kathy chose to highlight your post this week...great stuff!

Jul 30, 2017 07:51 AM #8
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Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

Hi Kevin

It's a shame that sellers like this have to learn the hard way about their pricing, despite being educated about the market and the home's vlaue. Could also be the agents just did not do a very good job of convincing...plus they took an overpriced listing.

Jeff

Jul 30, 2017 08:08 AM #9
Ambassador
3,079,616
Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

It's quite painful for some sellers to understand that the benefit of home ownership may not always have a payout greater than what they put in.  They forget the mortgage interest deduction they benefited from and the stability of having a home.  Either they want or need to sell, or they don't.  I'm guessing the folks in this example don't.

Jul 30, 2017 09:45 AM #10
Rainmaker
1,066,757
Margaret Goss
Baird & Warner Real Estate - Winnetka, IL
Chicago's North Shore & Winnetka Real Estate

Your market has had a similar trajectory to mine and I have many of the same stories as you.

Twice I was the 3rd agent to list a house.  Twice I brought the sellers great offers that they refused.  Twice I lost the listings only to see them sit on the market for another year with agent #4 and sell for considerably less than the offers I had presented.  It's painful all around.

 

Jul 30, 2017 10:00 AM #11
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Gayle Rich-Boxman Fishhawk Lake Real Estate
John L Scott Market Center - Birkenfeld, OR
"Your Local Expert!" 503-755-2905

Kevin, this should have been *FEATURED* along with Kathy's wonderful accolades! I've been there so many times with money-grubbing sellers. I just told yet another buyer that I will not be showing a lakefront home that's listed at @$100K over asking price. Years ago (yes, YEARS AGO), when the seller had it for sale by owner, I brought a cash buyer who brought in a perfect price. You know what the seller told us? "I fell in love with the property and overpaid for it, why shouldn't someone else?"  After that ridiculous comment, I thought why bother? I have seen another offer come and go, because the seller was once again, overpriced, didn't disclose that the property had flooded and the agent who was representing his own family in the purchase was unaware of how high the price was. Oy vey. 

That sale didn't happen either. Oh, too BAD. 

 

Jul 30, 2017 04:21 PM #12
Rainmaker
2,099,863
Sharon Tara
Sharon Tara Transformations - Portsmouth, NH
New Hampshire Home Stager

Such. A. WASTE. Of. Time.

OMG.

You have to wonder what is going through a seller's mind.

Jul 30, 2017 05:58 PM #13
Rainmaker
1,414,903
Kat Palmiotti
Grand Lux Realty, Monroe NY, 914-419-0270, kat@thehousekat.com - Monroe, NY
The House Kat

Unfortunately, this really is something that is repeated all over. Some sellers just don't understand supply and demand, and can't believe someone won't over pay for their home.

Aug 01, 2017 04:02 AM #15
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3,982,176
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

It is a supply and demand issue and we are seeing some real shortages. It pays to keep a close eye on it.

Sep 18, 2017 06:09 PM #16
Rainmaker
3,246,897
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Kevin

Now that's one winding road.

Good luck and success.

Lou Ludwig

Oct 17, 2017 08:01 PM #17
Rainmaker
1,786,000
Ginny Gorman
RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in North Kingstown RI and beyond

Sorry I missed this one Kevin J. May it is so true and many here are still experiencing the same thing...multiple agents (like that is the magic bullet...each one promising more) listing the house over years...sellers still saying but I have to get 'this number' and the market says no.

Oct 18, 2017 07:01 AM #18
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Kevin J. May

Serving the Treasure & Paradise Coasts of Florida
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