I had to meet with some clients last night to discuss their property and I had to give them the unfortunate news that there property needed to be dropped in price by at least 50,000 to sell.
It is so difficult to try boost your spirits in a time when you are having to break others. No, they don't have to sell and that is what I advised, but it sure makes it tough to get a listing and even tougher to get a sale without any of the first. In a time when optimism keeps you going it is necessary to also offer some realism. Sometimes a large dose is necessary especially if you are coming in trying to show realistic outcomes.
Having just receive the WRA stats our region in Wisconsin has been particularly hard hit and we have seen a 47% decrease in sales from last year to this year. The neighboring county has seen a decrease of about 35%. Those are the majority of my market. Our average home sale price has actually not fallen much but sales are so down we are just not selling much.
It creates a weird economic paradox b/c our supply( or lack of demand for it) has not caused prices to fall. We have seen sellers pull b/c they don't have to sell and buyers writing multiple offers to try and cherry pick the listings. It is the mentality the mob had rushing WalMart... where can I save the most money....who do I have to trample to get the best deal.... It has sort of created a stale mate here b/c the sellers refuse to budge and the buyers refuse to spend more than say...30% less than asking price b/c that is the national average ( that day) of what prices have dropped. It is a very confusing time here and patience will be necessary to keep buyers looking and sellers negotiating.
I want to offer optimism to my clients and be positive that their property can and will sell but I feel very guarded b/c in this market it is hard to say there is a sure sell or a buyer out there. I think a hard dose of reality is what both the client and the agent need in this market...