Market price or wish price?

By
Real Estate Agent with Keller Williams Properties, Weston FL

Unfortunately for sellers... they are still in that mode that it's still a sellers market and they are still looking to get that big 25% return we were all getting the last 3-4 years, I ...as well buy property and sell,rent or flip or whatever else you want to call it so I can relate to their disappointment.

But because of rising property taxes and ridiculous reasons insurance companies just drop HO's like a hot potato. Prices are starting to level off and I anticipate that they will surely start to drop at a drastic pace if something isn't done.I remember when things were different and they were just used to those crazy returns. If you think about it.... in a normal market we should be seeing about a 3-8% return.

That market was unreal and it did exist but I thinking that eventually it will change and we'll look back and see it was fake...never should have been and although people have capitalized on it....there are some who will probably be hurt badly.

I'm surprised at how many people qualified for mortgages that couldn't even afford to pay their cell phone bill. How could this be real?

I can't tell you how many price reductions I see in the MLS and how much time sellers are wasting. This is the new meaning for most price reductions. I tell my clients that we'll keep reducing until the market reacts.... or if they continue to insist to price too high...they'll sit longer on the market and reductions will continue.

If a homeowner insists on pricing their home way too high and they get an offer without any comps to support it...then how will it appraise? Will appraisers puff up their numbers? Or will they follow the rules.

I hope that whoever is monitoring this will understand that it was out of control and unrealistic. It can't last much longer and this will cause many homes to be lost if prices come down and people lose their jobs.

These wish prices can't come true for too much longer.

Remember....what goes up ...must come down!

 

For more information please contact Neal The Real Deal Bloom-Realtor® /Keller Williams Properties

                                                                                       Weston Realtor(R) Neal Bloom-copyright 2007

1625 N. Commerce Parkway,Suite 105

Weston FL 33326

(954)608-5556

The Real Deal tells it Like it is in Real Estate-copyright © 2009-All rights reserved

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Location:
Florida
Groups:
Weston FL Homes For Sale
Tags:
market price
wish price
florida and other states as well
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inventory
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Comments 24 New Comment

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Rainmaker
573,888
Neal Bloom
Realtor CRS-Weston FL Real Estate
Keller Williams Properties, Weston FL

unfortuantley our clients are very stubborn and are easily persuaded by the media. 

 

Eddy,

Thanks for your reply, welcome to the wonderful world of real estate!

Most clients are somewhat influenced by outside sources, but I think it is more because they are not on the streets like our industry people are, they just are influenced by those other sources IE the media and or the friend or relative who has become the expert!

October 02, 2006 11:30 AM
Rainmaker
573,888
Neal Bloom
Realtor CRS-Weston FL Real Estate
Keller Williams Properties, Weston FL

Did you see the Palm Beach Post today? (Oct 1). the headline was "Nobody's Market--Homeowners and buyers are being squeezed again--this time by taxes and skyrocketing insurance". It is not unusual for people to pay $12-20K before they touch their mortgage. Something need to be done in Florida!

Jay and Linnea Hanleyl

I try not to read too many articles because they all seem to be the same, I think buyers and sellers are being influenced from other sources such as the media for one and the relative who all of a sudden became the "real estate expert"

I think its cyglical and now is going to be like this for quite some time , hopefully in the next 6-8 months more of them will realize that the party is over for a while unfortunately, I for one as you know nuy and sell my own , but realize how painful it must be to have to be more patient when selling if you want the cake and eat it too.

October 02, 2006 11:34 AM
Rainmaker
573,888
Neal Bloom
Realtor CRS-Weston FL Real Estate
Keller Williams Properties, Weston FL

Too many sellers in todays market suffer from TLTL.  Their reducing their price Too Little Too Late (TLTL).  They are  expecting to rake in the high appreciation from last year in todays market.  Most of the sellers I see on the market now start there house on the market based on 2005 year end prices.  By the time they reduce their price to be competitive they have lost most of their prospective buyers.  Hopefully the sellers will catch on soon!

 

My partners and I have a few other sayings we have to add into our carrying costs... youll love to laugh..

MD which stands for Market decline ,BB for blood bath and finally

MAD,which stands for mortgage approval dimentia!

October 02, 2006 11:37 AM
Rainmaker
573,888
Neal Bloom
Realtor CRS-Weston FL Real Estate
Keller Williams Properties, Weston FL

David Knox's video named "Pricing Your Home to Sell" is an excellent illustration to provide the sellers before you present them with a price valuation at the time of taking the listing

 

Stephen,

I like that model but the only issue is if they give you enough time to play it for them before they throw you out, sometimes you only have 20 mins to give them everything before they ask the two main questions, how much are we going to make and how much are they going to make!

October 02, 2006 11:40 AM
Rainmaker
573,888
Neal Bloom
Realtor CRS-Weston FL Real Estate
Keller Williams Properties, Weston FL

Good Blog, lots of good comments.  I too am in South FLorida and notice the inventory glut we have. 

Florida is still strong in job growth and Broward County is considered "fully employed" (less than 3.2% unemployment).  This bodes well for the housing market except when the market is flooded by sellers, likely due to investors wanting to sell before the "bubble" bursts like the media has palyed for a long time. 

The media and the resulting panic is to blame for a lot of the supply problems we have in my opinion.  But if you look at history, the reality is most markets are simply returning to more normal rates (both appreciation and time to sell).  Rest assured, the market will become more stabilized, just like economic cycles. 

 

Robert,

Thanks for your comment and compliment.

I have noticed most of the replies are saying the same, too much media influence, as far as the rate of employment, I think that figure includes all the people becoming realtors!! LoL!

 

October 02, 2006 11:25 AM
Rainmaker
573,888
Neal Bloom
Realtor CRS-Weston FL Real Estate
Keller Williams Properties, Weston FL

Robert,

Thanks for your comment and compliment.

I have noticed most of the replies are saying the same, too much media influence, as far as the rate of employment, I think that figure includes all the people becoming realtors!! LoL!

 

March 31, 2007 10:09 AM
Rainer
9,408
Leigh Gerhard
Boca Executives Realty LLC

 Realtors Need to educate our sellers as for the current market. I am refusing the listings seems like daily due to seller unwilling to price the property correctly. I am however getting some good listings now, that they listed with another Realtor and had no showings. Now I have some of the best prices property's around and they are getting shown. 

 I have been selling property in St Lucie County for 20 + years and I have seen the market go from buyer to seller and seller to buyer 3 times. The properties must be priced right.

Lee Gerhard

RE/MAX Coastal Realty

Fort Pierce, FL 34982

April 02, 2007 07:24 PM
Rainmaker
573,888
Neal Bloom
Realtor CRS-Weston FL Real Estate
Keller Williams Properties, Weston FL

Lee,

It actually is alot worse then when I first wrote this blog.

But ......I have faith the market will at least level off, the problem is all the listings that are current should take at least a yr before they sell, and that is if.....and I mean if no additional inventory comes on the market,which we know will not happen.

April 02, 2007 08:17 PM
Rainmaker
573,888
Neal Bloom
Realtor CRS-Weston FL Real Estate
Keller Williams Properties, Weston FL
Most sellers will ont agree,they still think there is a price to wish for.
April 03, 2007 08:50 PM
Rainmaker
573,888
Neal Bloom
Realtor CRS-Weston FL Real Estate
Keller Williams Properties, Weston FL
Interesting if I look at this blog...I wrote this a while ago and you can see things have not gotten better...unfortunately for the worse here in Florida.
August 22, 2007 12:18 PM
Rainmaker
185,099
Michelle Burgos
CDPE, Short Sale Expert, Pembroke Pines,Miramar,Davie,Hollywood
RE/MAX PowerPro Realty

Neal, I have a philosophy...

The three best titles one can posses in life are:

  • Being the FIRST CHILD in the family
  • the SECOND SPOUSE
  • and most importantly, the THIRD REALTOR! (lol, funny but true)

I have found that when sellers have been trying to sell for a long time they are more responsive to what you have to tell them.  They have been in the game long enough to know that if they do not change their notions they will fail in selling their home, yet again.  This gives you the upper hand, and if you find they have not sold due to lack of motivation then it is up to you to either educate them of the importance of staying ahead of the competition in regards to pricing and hope they react, or simply not take the listing... yet that is (tell them you will be back the third time around...lol).

The key here is to prepare them for price reductions at the listing appointment (work a reduction schedule right into your listing contract), keep them informed and involved in the process, you will see they will be calling you to remind you... "Neal, it's time to change the price again!"

Good Luck!

August 24, 2007 05:42 PM
Rainmaker
573,888
Neal Bloom
Realtor CRS-Weston FL Real Estate
Keller Williams Properties, Weston FL

Michelle,

Thanks for stopping by and reading an old blog...I guess the link revived it:)

August 24, 2007 06:55 AM
Rainer
77,555
David Slavin
CDPE, ABR, SRES RE/MAX Grand
RE/MAX Grand
So many sellers are in denial.  They don't want to believe that we are in a buyers market.
August 24, 2007 10:55 AM
Rainmaker
325,145
Esko Kiuru

Neal,

Good point you're making about the seller's wish price. It's human nature to be emotional about some gains you have made in the past, like home prices, and not accept the reality when some of those gains turn into losses when the market shifts. You are happy to get, but not so happy to give back.

August 24, 2007 12:19 PM
Rainer
299,956
Vicente A. Martinez
Realtor, Brooklyn - Long Island - Queens Homes
Prudential Douglas Elliman Licensed Real Estate Salesperson
Wish prices, definately... the market is still adjusting to the difficulties the banks gave to with the 106% fiancing and credit in the 500's.  The best bet is to price it right and have the guts to walk away from the overpriced turkey. Let some smuck broker list it, when it expires the seller is 100 times more receptive to your advice (after they see for themselves you were pretty much on the money). I do it all the time and it works for me.
August 24, 2007 06:24 PM
Rainmaker
573,888
Neal Bloom
Realtor CRS-Weston FL Real Estate
Keller Williams Properties, Weston FL

David,

I just hope some of them decied not get foolish.

Esko,

Look when I wrote this..I predicted this...weired. Thanks

Vincent,

I'm walking away to them more often now.

August 24, 2007 07:07 PM
Rainmaker
222,571
Rick & Ines - Miami Beach Real Estate
Majestic Properties
your first post was featured!!!  Wow!  that's impressive!!  Sad to think that in a year, things have not changed much, no?
September 23, 2007 09:58 AM
Rainmaker
573,888
Neal Bloom
Realtor CRS-Weston FL Real Estate
Keller Williams Properties, Weston FL

Ines,

What a joke...I wrote this right from the heart...not even knowing what a feature was...it was absolutely a prediction at the time and wouldn't you know it...it is true today!

September 23, 2007 10:11 AM
Rainmaker
331,661
Thesa Chambers
Principal Broker - Licensed in Oregon
Alpine Real Estate
and a year later we are still reducing prices..... funny how this is still true
October 20, 2007 11:44 AM
Rainmaker
573,888
Neal Bloom
Realtor CRS-Weston FL Real Estate
Keller Williams Properties, Weston FL

Thesa,

This was my very first post...I actually didn't even know what a feature was or what I was doing...I just wrote it during a time when we were buying property...funny how it was predicted to still be true! Thanks for stopping by!

October 20, 2007 01:07 PM
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Rainmaker
573,888

Neal Bloom

Realtor CRS-Weston FL Real Estate
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