Wednesday, August 8, 2007

Selling Smart in Today's Market

How in the world can we be smart in today’s market?

Everyone wants to be smart in their real estate moves. Really, most just don’t want to be dumb. Unfortunately, many are now considering non-action for action and are hiding behind the mantra of, “We’re not going to give it away!”

It isn’t that kind of market, folks. Consider what the Chief Executive of Countrywide Financial, Angelo Mozilo, the Largest U.S. mortgage underwriter, said on July 25th, “No one saw the deterioration of real estate values coming.” He went on to say, “The Company is seeing home price depreciation at levels not seen since the Great Depression.” If you still can’t adjust your expectations to reality, or if you are wondering why you weren’t told about this think about the above statements. The number one man of the largest mortgage company in the nation says they didn’t see it coming. Don’t fault yourself, or your agent – take action now.

We’ve recently seen amazing Seller resistance to price adjustments in all market segments. It has been frustrating for agents offering professional insight and perspective to Sellers in denial. The results are numerous agent “firings” of customers. This is when they give back the listing because they feel they can’t get the job done at the List Price in today’s market. Given that Mr. Mozilo thinks it will be mid-2008 or even 2009 before things come back, it is important to evaluate your situation with brutal honesty. Listen to your agent.

Our Advice: Quit worrying about what your property was worth in 2005 – that was then. Don’t scheme about how you can take advantage of an unsuspecting out-of-state Buyer – Buyers are smarter now and nobody pays too much in this market. If you have an opportunity to replace your residence with something equally affected by the market as your present property – sell and buy and get on with your life. If you have health or family issues that are affecting your need or desire to sell – price it right and get on with your life, prioritize right between money/health/family and your decision should be easy. Don’t try to fool your agent into believing your value story – if they believe you then you haven’t selected the right agent to work for you. Your agent must take a risk right now. Your agent must tell you what you don’t want to hear … the Truth. The risk of disappointing you now greatly outweighs the risk of really disappointing you in six months. The good ones will take that risk to serve you professionally – it’s up to you to listen and take action.

Property is selling … at interesting prices. Yours can sell – when you remove the blinders and have an honest look at where you fit in today’s market. Buyers are “pricing forward” in their offers – something Sellers were doing not too long ago in the other direction. If you don’t have to sell now … don’t!

When it comes to choosing professionals to assist you with your real estate needs… Experience is Priceless! Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates,, 775-781-5472.

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