Enewsletter August 31, 2009
HARRY'S COLUMN
TWO KEY QUESTIONS FOR PROSPECTIVE SELLERS
QUESTION #1: Do I want to be "right", or, do I want to be happy?
Thinking of selling your home? If you are, the best thing you can do to expedite the process is to forget that it is "your home" and try to look at it as "just another listing", because, once it hits the MLS, that's exactly what it becomes. It will no longer be the place where you raised your children, where you planted that beautiful tree in the front yard, where you have all those great vacation pictures on the mantle. To potential Buyers, your home will be just another one of the 5,126 homes listed for sale in the MLS. So, with that in mind, the first key question you have to ask yourself is, "Do I want to be 'right', or, do I want to be happy?"
Let's look at how Mr. Right decides how to price his home.
"Just two years ago, houses just like mine were selling for $350,000. Therefore, considering appreciation, my house should be worth $370,000 today."
"Since we bought this house, we spent over $2000 on landscaping, over $1500 on new windows and over $2200 on a new paint job. That should be worth something".
"I'm not going to just "give" my house away".
Now, considering all of these facts, Mr. Right can decide to set his jaw and his asking price. If he does, considering the realities of today's market, he could easily wait two years for a Buyer. During those two years of treading water, he will probably hire and fire a series of Agents who just don't understand how "right" he is. Eventually the market will probably catch up to his expectations and he might get his asking price. However, by that time, the interest rate on his next home will undoubtedly not be today's 5 ¼%, but will probably be closer to 7 ½%, and the Seller of his new home will not be as willing to negotiate as is today's Seller. (Unfortunately for him, that's the price Mr. Right will pay for being "right").
Now let's look at how Happy Seller prices his home.
First of all, Happy Seller relies upon his real estate Agent to help him analyze the current market and set a realistic listing price. (Take a look at the latest sales and listing statistics, below. A good Agent should be an expert on pricing and on what's selling right now).
Happy Seller understands that, unless he can get potential Buyers to look at his home, it will not sell and, realistically, a competitive price is usually what determines whether Buyers even consider looking at a listing.
Happy Seller understands that reducing his selling price now in order to make his home more interesting to potential Buyers, will enable him to sell quickly and thus buy his next home at today's lower prices and at today's great low mortgage interest rate (currently 5¼%).
QUESTION #2: Do I want my home to sell now, or, do I want to tread water?
On August 30, 2009, RISMedia listed the cities that showed the most significant price reductions for their real estate listings from June 2009 to August 2009. Unfortunately, Colorado Springs was #2 on the list, recording 27% more price reductions for the listings in our MLS, for these three months. These reductions in listing prices reflect the fact that Sellers, rather than being guided by the advice of a knowledgeable Real Estate Broker when they list their homes, tend to overprice their listings. Then, when their homes don't sell, they begin to gradually reduce their asking price, until they finally reach a realistic market price.
The cities experiencing significant increases in percentage of listings with price reduction from June 2009 to August 2009 include:
Fresno, CA - 67% increase in price reductions
Colorado Springs, CO - 27% increase in price reductions
Kansas City, MO - 25% increase in price reductions
Oklahoma City, OK - 24% increase in price reductions
Albuquerque, NM - 22% increase in price reductions
The cities showing signs of recovery with significant declines in percentage of listings with price reduction from June 2009 to August 2009 include:
Dallas, TX - 42% fewer price reductions
Las Vegas, NV - 33% fewer price reductions
Louisville, KY - 33% fewer price reductions
Los Angeles, CA - 19% fewer price reductions
Washington, D.C. - 17% fewer price reductions
If you are thinking about selling your home, instead of wasting your time treading water, you will be better off taking the advice of an experienced Broker who can guide you in establishing a competitive listing price for your home right from the beginning. Utilize the services of a Broker who is constantly studying the sales and listing statistics for the local neighborhoods and who can assist you in selling your home by providing the "extras" that can motivate potential Buyers to select your listing rather than any of the other 5,126 listings that are contained in our local MLS.
We pride ourselves on offering the most Innovative marketing tools to our clients. Our Job-Loss Protection Plan, our Competitive Market Analysis, our ability to assist local and out-of-state potential Buyers in selling their present homes, combined with our 37 years of providing relocation and real estate services to clients throughout the country, uniquely qualifies us to assist you with the relocation process, including buying and/or selling homes on both ends of your move.
WANT SOME GOOD NEWS?
On August 26, The Wall Street Journal reported that home prices in the major U.S. Cities rose 1.4%. According to InmanNEWS, this hints that a turnaround in the housing market is beginning. They also report that The National Home Price Index registered a 2.9% gain from the first quarter to the second, which was the first quarter-to-quarter gain in three years.
HOW ABOUT SOME MORE GOOD NEWS (but you already knew this)
The current issue of Outside Magazine, a publication dedicated to people who enjoy the outdoors, has rated America's Best Cities. This rating is based upon the city's cultural vibrancy, economic well-being and overall quality of life. They also ranked these cities by cost of living, unemployment, nightlife, commute time, access to green spaces, percentage of the population with college degrees, income level in relation to home prices, weather, quality and proximity to biking, running, hiking, paddling and skiing. And guess what ..Colorado Springs is #1. Here's their top ten list:
1. Colorado Springs
2. Seattle, WA
3. Atlanta, GA
4. Austin, TX
5. Boston, MA
6. Albuquerque, NM
7. Portland. OR
8. Minneapolis, MN
9, Cincinnati, OH
10. Charlotte, NC
(Editor's note: Cincinnati ????)
LATEST STATISTICS
Click here to see the latest sales and listing statistics in our area
http://www.salzmanrealestateservices.com/Agent_files/Listing-Sales%20Stats.8-09.pdf
To hear my latest podcast, just click on the icon at the top of this email and, please remember, I would be honored to serve as your Broker for all of your residential real estate needs.
JOKE OF THE WEEK
This year, taxpayers will receive an Economic Stimulus Payment. This is a very exciting new program that we will explain using the Q and A format:
Q. What is an Economic Stimulus Payment?
A. It is money that the federal government is sending to taxpayers.
Q. Where will the government get this money?
A. From taxpayers.
Q. So the government is giving me back my own money?
A. Only a smidgen.
Q. What is the purpose of this payment?
A. The plan is that you will use the money to purchase a high-definition TV set, thus stimulating the economy.
Q. But isn't that stimulating the economy of China?
A. Shut up.
Below is some helpful advice on how to best help the US economy by spending your stimulus check wisely:
If you spend that money at Wal-Mart, all the money will go to China .
If you spend it on gasoline, it will go to the Arabs.
If you purchase a computer, it will go to India.
If you purchase fruit and vegetables, it will go to Mexico, Honduras, and Guatemala (unless you buy organic).
If you buy a car, it will go to Japan .
If you purchase useless crap, it will go to Taiwan .
And none of it will help the American economy.
Q. This doesn't seem to make any sense
A. Shut up.
