Motivation, Emotion and Circumstance.

Real estate is really about people – their Motivation, Emotion, and Circumstances – their “MEC” Most real estate transactions are put together … or not … because of the above. The real property is what it is – it is the people that change. So how does this help you be confident in your purchase? Understanding this will enable you to examine your motivation, emotion and circumstances as well as that of the Sellers of homes you are interested in buying.

Your wants and needs in a home will impact every aspect of your MEC. If you have five children you won’t want a two bedroom condo. Want horses … you need the right lot size and zoning. Want a short commute … where do/will you work. Specific schools for your children … buy in that district. Great room or formal floor plan … buy accordingly. Two story, basement, workshop, etc. … put it on your list.

If you want to be near family or friends find the nearest neighborhood to them that meets your criteria and then shop in earnest. Don’t want to be near family … do the opposite! How long do you plan to hold the property … plan your exit strategy when you buy- make sure you are buying something that is generally appealing in the market. Make notes of your family needs, your recreation endeavors, and your budget. How much you can/want to spend. All of these should be considered when you decide what and where to buy.

As you go through your MEC preparation understand that Seller’s, too, have their own MEC. The marks in the doorway charting their children’s growth won’t be going with them. Nor will the sink that their babies were bathed in, or the stunning mountain view they enjoyed so much. They might have a family need to move, a job reason, or health ailment necessitating a change. They are selling for a reason – their motivation. If a Buyer and Seller are sufficiently motivated there will be a healthy transaction. Motivation isn’t always a sign of weakness … it is, however, the main factor(s) that will direct a person’s action or decision making. Understanding your motivation and that of the Seller will help you know if you are making the best buy you can get on a specific property.

Our Advice: When you are clear in your MEC you will be able to study the market for properties that meet your minimum criteria. Knowing what you want will help you establish what it means to you will give you the confidence with your buying decision that you aren’t making a mistake. Remember, your agent isn’t buying or selling anything – only you know what the true value to you is. Don’t act, or not act, because of your agent. Assemble the information your agent provides and evaluate it as it relates to your MEC. There will be a very logical course of action … act accordingly. It isn’t always about price – how good of a deal will you get if you compromise on the house you buy to get a “screaming deal”?

Beauty is in the eye of the beholder … and so it is with real estate. Buy for you and your wants and needs and you can buy with confidence. Experience is Priceless! Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, www.carsonvalleyland.com , email us at carsonvalleyland@hotmail.com or phone us anytime at 775-781-5472 or toll free at 800-814-8799 #254.

What is the right price in this market?

The home we want is priced right … what should we offer?

Many Buyers are compelled to offer low because they’ve read, or been told, to do so. Others think they have to do it because somebody did it to them in another market. If the home you like is priced right … get what you can and buy it.

Smart Buyers are making offers based on their knowledge of the market and hopes for a good deal. Ultimately they are accepting a negotiated price and getting what they want at a good value regardless how it compares to the listed price. We recently saw an offer 22.2% below the list price of a well priced property. The Buyers had to try it and they did. Fortunately, they knew the market and recognized that the property was well priced. Ensuing negotiations resulted in a price but .7% below the list price, less than a 1% reduction! Both parties were happy and achieved their objectives.

The values are all over the board these days. We recently showed property and found homes three doors apart, the same plan by the same builder, that were priced $30,000 apart. They were essentially the same house. One was priced right – the other deserved a “wake-up” offer. In another neighborhood we experienced a discrepancy of $60,000 between similar homes. In that case the lower home was priced by a very active local agent that had great knowledge of the market. The other agent was from out of town and unfamiliar with the market. Sometimes out of town agents are relatives, but more often they are sought out by Sellers because the local knowledgeable agents wouldn’t tell the Seller what they wanted to hear. Both of the homes $60k apart are still unsold, but which do you think has a better chance of selling?

Sellers and their agents must look realistically at what they are trying to achieve and plan accordingly. It doesn’t matter what you paid or what you owe – market is what market is. If you want, or more importantly, have to sell then get a realistic Realtor. One that will tell you the truth and make a plan that works for you for your situation, not just say what you want to hear so they get a listing hoping one of two things happens: 1. they find a fool and his money – rare in today’s market, or 2. they list high at what you are hoping for, and then beat you up for a price reduction week after week, you concede and their slimy tactics are rewarded … for them.

Our Advice: Because of the great discrepancy in prices in the market place one must be really sure when pricing. If it is priced right … really right … you will sell. What your home was worth in 2005, or will be worth in 2009, is irrelevant. If you want to sell today you can … if you are positioned in today’s market in a today manner. That includes price, condition, showing availability, experience … and intention. If you don’t need to sell – don’t right now.

If you need or want to sell … do it right, price it right, and you will be moving. The days of the uneducated Buyer are over. If you are waiting for someone to come in and pay too much you might as well hunker down for a long winter. Experience is Priceless! Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, carsonvalleyland.com, 775-781-5472.