As I read the below I had to agree, but at the same time had to ask myself what can I do to change the current "mindset" of the Buyers, Sellers, and other REALTORS here in my little area of Georgia. My first thought was to publish the information.. Get the truth out there.
..... feedback from Realtors® across the country about some unique factors that are not yet being captured in hard, quantifiable statistical data. The common themes are: Published in National Association of REALTORS® online report July 3rd 2008
(1) Short sales are excruciatingly frustrating because lenders take forever to reply
(2) REO (bank-owned) properties are getting multiple bids and selling above list price
(3) Homes sell without a problem if priced correctly
(4) Many eager buyers cannot buy because they cannot sell their existing home
(5) Buyers of fixer-uppers are not buying because of the high cost of construction
(6) Builders are selling for less than the cost of construction and hurting the existing home market
(7) Low appraisals are leading to fallouts
(8) High gas prices are impacting neighborhoods far out from the city
(9) The media is painting inaccurate picture not related to my local market conditions and scaring away the buyers
(10) Buyers are waiting for the prices to drop further before committing
Yes Short Sales are taking "forever" - however you do get a great deal if you can wait ...some people are watching those clearance rack for summer clothing for next year.. why would you not do the same for a GREAT value on a home?
Yes REO are selling quickly - why? - because banks are aggressively pricing property to sell in 30 days to increase cash flow..so don't low ball an offer you may loss the deal.
Homes are selling -- if priced right.. that was true 10 years ago 3 years ago and today.. review the market and price within the market not within some price high expect low meet in the middle game.. you will lose buyers - QUICKLY--
Buyer can only buy when they become buyers -- that means they no longer are sellers -- there is enough great inventor out there so keep the client focused on just one thing at a time -- sell then buy.
Fixer ups are not deals or we can't fund "the fix" - looking in to FHA 203K loans here in Atlanta GA you can get 30K towards Fix Ups as part of the primary loan.
Builders are cutting cost... true and some builders will buy your home to get the sale... however be careful... some builders are a short walk from pulling out and not finishing homes and subdivison... Don't be the first one in, you maybe all alone.
Low Appraisals... Hmmm is the Appraisal low or the home price out side of the market value?
Gas prices - will come and go - sell the value of the area now and in the future - heck they maybe a light rail system in the planning.
Media -- ratings pay the bills -- and good news does not great rating make -- share the local facts with your clients.
Buyers are waiting for the "bottom" - you don't know it's the bottom until your half way up the other side. If it is priced right and fits your need why wait? As prices move up you buying power declines.
We (REALTORS) must stop following the negative mindset junkies and start setting the mindset and take back our business. based on truth .. (Where is Helen Reddy when you need her?)
Eric - you make some great points about the current market.
However I think the Mortgage Industry (and the uncertainty about loans) is one of the biggest real negative factors effecting Buyer's decisions to buy now.
And yes, you're 100% correct. No-one rings a bell to say we've reached the bottom of the market - so if buyers can realistically afford a particular property, now is one of the best times to buy a house. I think we're seeing some outstanding buying opportunities.
So true, Thanks for the reminder. I'll keep working on that attitude adjustment!
Well, like Mr. McCain's economic advisor states, "it's all in our minds" . . . . . ?
There are challenges out there. I was talking to a non real estate professional the other day and was reminded that yes, we are in a problematic market, but when people "overcompensate" based on the high degree of negative news, then the problem becomes much larger than it needs to be. Things are bad, stop spending money. Things are bad, don't take a trip. Things are bad, don't do that upgrade to the house. Things are bad, don't enjoy a dinner out tonight. Every time we stop an activity, someone else is affected. When they are affected, someone else is affected, and so on. Now business are generating less revenue/profit, they need to cut back worker hours or lay off. Their suppliers vendors are now affected and have to cut back worker hours or lay off. It's like a tiny snowball at the top of the hill -- boy it got big once it hit the bottom of the hill. We shouldn't ignore the fact that there are issues, but don't overcompensate on the negative side. Stay in the middle, try to stay focused on what you can control, not on what you can't, and if you have fewer sales and more time on your hands, put that time to good use and do more networking, blogging, re evaluate how you are running your business, and maybe take a day or two off, take a breather, and come back refreshed and invigorated.
overcompensate -- love this idea
I think that is what has happened ... I heard agent saying .. I am not working with buyers because of the cost of gas ??? ok so how are you selling house ... how are you paying for gas .. istead work a smaller market and with more buyers
I can't agree more Eric, but the reality is that the homes are not moving thru the cycle due to an over correction at the bank/lenders.
Its really that simple.I had a guy who wanted to buy a building..his lender came back before closing and asked for 50% down....up from 30%...yo guessed it..another deal in the weeds
Yes the Market is between your ears!!!!! Over the past 2 months I have been knocking doors and helping sellers that need to sell in the next 12 months listed 10 properties and have 2 under contract now.........
Think good thoughts and GO OWN your DAY!!!!!