Mike’s Real Estate Show

Your a seller and are getting offers but are  holding out for more? You’ve got a common malady amongst many sellers today: Chasing the market syndrome! Of course your house is nicer than your neighbors and sure there are other sales in the area which are driving down your homes price and maybe you can get the sun to not rise tomorrow and autumn to not come this year!! While you are fighting the inevitable this market is slipping away from you. In a month’s time when the buyers have dwindled down and you still need to sell you’ll be dropping your price to catch up to the market which has left you behind.

I’m amazed at clients who tell me since homes are selling for 95% of list price then the sales price should be at THIS price so THEY can net THEIR price!!! Many of our MLS systems don’t have a true Sale to List price as some don’t consider the original price but the sale to list at the time of the sale. Also, they could have been listed with another company at a ridiculous price prior. I’d get off the “average” sales prices and take a hard look at the competition. If your home is in “far better condition” than your neighbors does this mean more square feet? Bigger lot/more acreage, or just new paint and roof? Most buyers expect these “systems” to be in good working order. Once you get into contract you may not be asked for any big credits for deferred maintenance as your neighbors. If you bought the biggest, nicest house in the neighborhood of course you will get MORE but don’t expect to get the big numbers you could get if ALL your neighbors where just like you! You’ll get dragged down; it’s classic text book appraisal principles. If you’re in an area of frequent foreclosures then get ready for more!! We’ve got $50billion being recast in December and $140Billion in March/April. I’d got back and consider those offers. Get some cash and then go shopping in about 6 months. You’ll come out a winner.