We Don't Dictate the Market, the Market Dictates Us

By
Real Estate Broker/Owner with M & M Realty of Brevard Inc. BK629999

We Don't Dictate the Market, the Market Dictates Us by Sandy ShoresOn my next listing appointment I'm going to wear a suit of armor!

A couple of days ago I went to meet with a seller about marketing her home for sale.  She had a beautiful 3 bedroom, 2 bath, well appointed home in a desirable neighborhood.

I always like to take a little time to get to know the owners.  And, I ask them to take me through the house and tell me as much as they can about it.  This way I can get a feel for the property.

The owner seemed a bit hurried, as she showed me the top of the line amenities she had added to her lovely home.

We sat down to discuss my marketing plan, to sell her property, when she chimed in with, "Well, how much? How much can I get for my house?"

I pushed the marketing materials aside and picked up the market analysis I had performed on the property.  In today's market, realistically the home was worth approximately $189,000. 

When I gave her that figure, I was about to duck, because she looked like she was going to pick up a book and throw it at me!

'Back in 2005, I had a neighbor down the street offer me $350,000 for this house!' she boomed.  'You can't tell me that it's only worth $189,000, today!'

Unfortunately, I don't create the market, I can only interpret it.

 

Sandy Shores REALTOR®, Melbourne/Palm Bay FL Real Estate

Brevard County, Florida's Space Coast Real Estate & Investing

I specialize in Residential, Investment & Relocations. 

We have a team of professionals that can help  with your Short Sale.

I buy, sell, rent, own and manage Investment Property

 

 

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Sandy Shores, Broker   

Melbourne Real Estate

M & M Realty of Brevard, Inc. 

Residential, New Construction, Relocations & Investment

Brevard County FL Real Estate 18 Years

Brevard County FL Resident 39 Years 

Serving Melbourne, Palm Bay, Suntree, Viera, Rockledge, Cocoa,  Merritt Island, Titusville, Cape Canaveral, Cocoa Beach, Satellite Beach, Indian Harbour Beach, Indialantic & Melbourne Beach

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321-253-4545 or 321-254-2964

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Re-Blogged 3 times:

Re-Blogged By Re-Blogged At
  1. Carol Kilburn Paul Tully 02/25/2010 02:00 PM
  2. Ann Hayden 03/01/2010 10:07 PM
  3. Felix Hung 03/01/2010 10:56 PM
Topic:
Home Selling
Location:
Florida Brevard County
Groups:
Addicted to Active Rain
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REALTOR LIFE
Realtors®
The Lounge at Active Rain
Tags:
we dont dictate the market the market dictates us
brevard county real estate
selling your home

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Rainmaker
622,713
Sandy Shores Broker, Melbourne Real Estate
M & M Realty of Brevard Inc. - Melbourne, FL
Brevard County FL Real Estate

Robert, Is is definitely a hurdle that we must deal with - today's market value.  We must remind the public not to shoot the messenger.

Feb 25, 2010 02:02 PM #5
Rainmaker
622,713
Sandy Shores Broker, Melbourne Real Estate
M & M Realty of Brevard Inc. - Melbourne, FL
Brevard County FL Real Estate

Chad, I know, right?  If only we had shined up that crystal ball back in 2005. We'd all be sitting fat and pretty, wouldn't we?

Feb 25, 2010 02:03 PM #6
Rainmaker
622,713
Sandy Shores Broker, Melbourne Real Estate
M & M Realty of Brevard Inc. - Melbourne, FL
Brevard County FL Real Estate

Dennis, Thanks, time will tell how this one will wind up playing out!

Janice, It is a difficult bullet to bite...sellers admitting that their homes are not worth, today, what they were 5 years ago.  Many owners are still hanging onto to that hope that is long gone, now.

Feb 25, 2010 02:05 PM #7
Rainmaker
1,547,587
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Authentic Feng Shui Expert

Sandy, Isn't that sad that some people haven't faced reality about home prices in the last few years?  She couldn't have missed it...

Feb 25, 2010 03:14 PM #8
Rainmaker
341,459
Elizabeth Bolton
RE/MAX Destiny Real Estate Cambridge, MA - Cambridge, MA
Cambridge MA Realtor

Hi Sandy ~ A good number of CMA appointments have been brutal over the last year and a half or so. Sometimes it reminds me of how restaurant customers blame their waitress if they don't like the food - which she didn't cook! I will say that all of the doom and gloom in the media has meant that a lot of homeowners have a much more rational view of the value of their property - thank goodness.

Liz

Feb 25, 2010 03:35 PM #9
Rainmaker
34,855
Jesse Vasquez
Team Vasquez Realty Group - Tampa, FL
"SOLD"

Wow! did you get the listing? LOL.. you need to keep taps on that house and then tell me what happened, now I am curious.

So where has this owner been the last few years the moon?

Feb 25, 2010 04:19 PM #10
Rainmaker
1,808,173
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
CRB, CRS, CIPS, GRI, SRES, TRC, e-PRO

Sandy

The market sets the price for real estate.

Good luck and success.

Lou Ludwig

Feb 25, 2010 07:02 PM #11
Rainmaker
207,585
Emcee M. Arah
Remax Excellence - Silver Spring, MD - Silver Spring, MD
Realtor w/Architectural Dimension, CRS, CDPE, CIAS

If she really thinks she can get that much for her house again, she should just wait it out.  It isn't going to happen right now apparently.  If you showed her the information you pulled, she should see that.  But the proof is in the pudding, isn't it Sandy?  You can't ring water from a turnip so either she waits for the market to swing back in the direction she wants or she deals with the way things are now.  The hard part is that she will most likely believe you aren't telling her what she wants to hear the truth and so will shop around to find someone who will tell her what she wants to hear the truth.

Emcee

Feb 25, 2010 07:41 PM #12
Rainmaker
385,611
John Walters
Frank Rubi Real Estate - Slidell, LA
Licensed in Louisiana

She doesn't understand the brutality of today's housing market.  i guess you didn't get the listing.

Feb 25, 2010 07:54 PM #13
Rainmaker
273,383
Irene Tron
Valparaiso, IN

Gee, I wonder if the neighbor would be willing to buy her home now for the same amount of money?  It's hard to deal with reality but you did the right thing in giving her the truth.

Feb 25, 2010 08:59 PM #14
Rainmaker
517,947
Mary Douglas
United Country Ponderosa Realty - Red Feather Lakes, CO
REALTOR, Red Feather Lakes, Colorado

Oh Sandy, It's tough for these sellers, I have seen that look.  I'm glad she didn't throw something, because you're right we don't dictate the market.

Feb 26, 2010 12:30 AM #15
Rainmaker
1,925,457
Gabe Sanders
the BlueWater Realty team specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Sandy, been there and done that!  Probably all of us agents have.  The big question now is, does she understand?

Feb 26, 2010 06:45 AM #16
Rainmaker
146,482
Caren Wallace
Premier Property Group LLC - Tualatin, OR
Portland Caren Real Estate

Sandy, unfortunately that is happening more and more! The worst part is that their taxes are not going down at the same pace!! Tragic!

Feb 26, 2010 10:39 AM #17
Rainmaker
1,194,650
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

You're so right Sandy!  Like I told one couple, "I don't make the news - I only report it!"

Feb 26, 2010 10:59 AM #18
Rainmaker
622,713
Sandy Shores Broker, Melbourne Real Estate
M & M Realty of Brevard Inc. - Melbourne, FL
Brevard County FL Real Estate

Carole, Unfortunately I think that owners are holding onto the hope that prices are were they were at the peak of the market in 2005.  It is hard to let go.

Elizabeth, You're right on with your example - please don't shoot the messenger. Really, I didn't do it.  The media has played a part in letting owners know that prices have dropped.

Jesse, I think that often owners have to take sometime to digest the figures that we give them.  I have been back in touch with her and will be meeting with her again next week.

Lou, The market does set the price, and there's nothing we can do about that.

Emcee, It's tough isn't it?  And you're right - you can't squeeze blood out of a turnip.  Our market increased by 180% from 2000 to 2005.  And it has come back down substantially.  We are back at early 2000 prices.  People hope that their home is the one that is different and the one that will stand out.  But, we have to remind sellers that the house has to appraise based on comparable sales in the area in the past 3 months.

Feb 26, 2010 01:26 PM #19
Rainmaker
622,713
Sandy Shores Broker, Melbourne Real Estate
M & M Realty of Brevard Inc. - Melbourne, FL
Brevard County FL Real Estate

Hi John, I think that sometimes it takes awhile for an owner to really understand the reality of the situation. 

Irene, So true, the truth is so important in our industry. We're just shooting ourselves in the foot by not telling the truth.  They have to know what to expect when their house goes on the market.

Mary, I agree, it is tough for these sellers.  I read an article a couple of years ago that for more than 50% of homeowners the bulk of their wealth was in their homestead.  Now, that's a really scary thought.

Gabe, I agree, most Realtors have been in the very same situation, numerous times. It's a hard pill to swallow.  She needed some time to digest things, as I could tell she had begun to shut me out. But, I am meeting with her again on Monday.

Caren, Oh so true. Owners taxes, nor insurance are going down like their property values are. Great point. So that really makes it a tough situation.

Myrl, If we did make the news, we would try to make it good news for these sellers, wouldn't we?

Feb 27, 2010 03:34 PM #20
Ambassador
1,319,776
Silvia Dukes PA, REALTOR
Tropic Shores Realty - Ich spreche Deutsch! - Spring Hill, FL
Florida Waterfront and Country Club Living

Sandy, its the bitter truth that sellers are facing.  I usually point out that it's also an opportunity for picking up something elsewhere for much less than they would have paid for a few years back. 

Mar 01, 2010 07:33 AM #21
Rainmaker
717,989
Ann Hayden
Berkshire Hathaway HomeServices Select Properties-St. Louis Missouri - Wildwood, MO
SelectAnn.com

Sandy,

I know just what you went through.  Why do they think we make the market? 

Ann Hayden in Wildwood, MO

Mar 01, 2010 09:00 AM #22
Rainmaker
622,713
Sandy Shores Broker, Melbourne Real Estate
M & M Realty of Brevard Inc. - Melbourne, FL
Brevard County FL Real Estate

Silvia, It is a bitter pill for many to try and swallow.  That's true. Sell low, buy low.  You can win on one end, can't you?

Ann, I think it's tough news for a seller to handle. don't you?  I think we just happen to be in front of them, passing along news they don't want to hear. 

Mar 04, 2010 11:36 AM #23
Rainmaker
717,989
Ann Hayden
Berkshire Hathaway HomeServices Select Properties-St. Louis Missouri - Wildwood, MO
SelectAnn.com

Sandy,

Yes, I think you are right.  They want us to tell them their house is worth the same as 3 to 5 years ago....

Ann Hayden in Wildwood, MO

Mar 04, 2010 01:52 PM #24
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