Positive Real Estate News for 2008
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The Difference Between Selling and NOT Selling is Simple!
I know it is hard for you to find a good story when it comes to selling real estate in today's market. None of us can deny that prices have adjusted downward and the market has shifted to benefit the buyer more than the seller.
When you look beyond the the news headlines and all of the doom and gloom stories, you can find a lot of successful sellers moving their properties without "just giving them away."
Selling in today's market is simple as long as you follow these simple steps!
First - In Today's Market: The Comps DO Matter!
Over the past few years, buyers, sellers and agents moved away from making logical decisions and started making decisions based on emotion. This is one of the biggest reasons that we saw the market climb to such heights in 2005 and 2006 and this is also why we are seeing such declines in 2007 and 2008. When the market responds on emotion versus logic, there is a lot of high and low swings. It is like a kid on a sugar high, they are full of energy, bouncing all over the walls for a short period of time and the next thing you know they have fallen asleep on the floor, they crashed. This sounds a little like our last few years in real estate.
Though we cannot control the market, we can control the way we make financial decisions. The buyers are making more logical purchases these days. They are doing research, looking at more then 3-4 properties and making offers on those properties that are priced fair in the beginning . When a buyer is thinking logically then the seller must do the same. You must look at the comps carefully. In most cases, it takes a very experienced agent who has been in the business in a down market before to guide you in the right direction. The comps will tell you what buyers are willing to pay and what banks are willing to lend on a purchase like yours. The comps do not lie, they practically predict the future.
Second - Price Property at Market Value!
Another mistake that agents and sellers are making in today's market is that they are pricing in a cushion when listing their property. As an example, the seller wants $200,000 for their property but since they are worried that the buyer is looking for a deal, they price it at $225,000 in order to have room for negotiations. THIS IS A MAJOR MISTAKE. Most of the time the cushion pushes the price outside of the logical price range that it should be priced and therefore the buyers never look.
In today's market, you are better off pricing the property at the level you are willing to accept and then hold firm. By setting the correct price in the beginning, you will create a lot more demand for your property.
Pricing a property at market value does not mean a low price, it simply means "market value." Today's buyer is afraid of making a mistake so they are looking for properties priced correctly. They are not all looking for a steal, they just want to make sure they do not over pay like so many did in the past few years.
I have always said that I would rather price my property aggressively from the start and turn down 10 offers for $1000 then be overpriced and not receive any offers at all.
Third - Keep the Emotions Between the Lines!
A common problem that we see agents and sellers making in today's market is when they get that first offer from a buyer and it is a lot lower then the list price. The agent gets mad and the seller gets offended. DO NOT LET AN OFFER AFFECT YOU EMOTIONALLY!
Remember, buyers are trying to find quality properties at a discount. If they made an offer on your property then that means they have chosen yours as being quality. It is natural for them to try to get it at a discount. You will be surprised at how often a buyer will make a low ball offer to later come up and pay market value and sometimes even full price for the property. If you get emotional about low offers then you are not likely to make a realistic counter-offer therefore chasing the buyer away.
Take the following steps when looking at ALL offers .
1. Say thank you for showing interest in the property
2. Review your financial position and the comps.
3. Make an appropriate counter offer.
Taking these simple steps will increase your chances of selling! Fourth - Hire A Qualified Agent!
I have always been a strong believer of hiring the most qualified professionals available. Top agents can help you make more money in a hot market and protect your equity in a down market. Take your time to find an agent who knows how to work in all types of markets. Too many agents got their real estate license's when the market was hot and now they are having a difficult time.
I am always available to answer your questions and guide you in the direction that is right for you. I would love to share with you what you need to do to be a successful seller in today's market. Please call or email me anytime with your real estate questions.
Michael Craven
REALTOR/Broker
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Licensed in North Carolina and South Carolina
Multi-Million Dollar Producer
Member - High Point Regional Association of REALTORS®
Member - Coastal Carolina Association of REALTORS®, Myrtle Beach, SC
Member - North Carolina Association of REALTORS®
Member - National Association of REALTORS®
Specializing in High Point, Greensboro, Jamestown, Kernersville, and
Winston-Salem, North Carolina Real Estate
  
    
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