You Are a Traditional Seller in a Market Laden With Foreclosures and Short Sales

By
Real Estate Agent with GreatWest Realty DRE# 00827565

  


Traditional sellers in Northern California are certainly not finding this the most joyous time to be marketing a home.
With the market bloated with foreclosures and short-sales, distress is often felt by sellers not in the same financial crisis as some homeowners, who are either trying to weather dramatically increased mortgage payments, while finding themselves owing more on their mortgage than the house is now worth. Still others face the foreclosure specter.

 

Home pricing on residential real estate is collaterally controlled presently, by the incidence of foreclosure rampant in many of the country's neighborhoods."

Buyers are bottom fishing for homes with the full knowledge there is blood in the streets stimulated by the number of home foreclosures. And these Buyers are fishing for the lowest possible prices, further driving down price. Therefore Sellers NOT living under threat of foreclosure, still need to compete with properties, which are.

There are a number of things a "traditional" Seller can do to successfully market their property, and remain competitive. (1) Price the home appropriate to where the market is currently with good comparative sales data in your area. (2) Because many foreclosed homes aren't in good repair, make certain your home is in tip-top shape. (3) Most bank-owned properties (foreclosures) are being sold "as-is". Offer your home with a roof certification, and termite clearance. (4) Make certain your home shows perfectly and appears inviting. Most bank-owned properties are vacant and cold appearing.

Overpricing your home in the current market will cause it to sit idly unsold, and possibly delay any move you anticipate making, indefinitely.

However, slightly under-pricing a home can bolster attention and buyer activity, improving chances to sell more quickly.

As in all housing markets, price and condition are paramount!

More than ever before, acquiring an experienced Real Estate professional, will pay dividends in assisting you in getting your home SOLD.  I look forward to hearing from you!

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Re-Blogged 1 time:

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  1. Debra Davis 06/12/2010 10:17 PM
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Show All Comments
Rainmaker
334,075
Judy Greenberg
Coldwell Banker Buffalo Grove- 350 Half Day Road - Buffalo Grove, IL
Coldwell Banker - Buffalo Grove - Long Grove Homes

This hits the nail on the head, and I was wondering if it can be reblogged! 

Jun 12, 2010 04:58 PM #21
Rainmaker
177,970
DEBORAH STONE
Hogue and Belong Bankers Hill- San Diego, CA - San Diego, CA

Sounds great and certainly some great ideas but unfortunately what I see for many regular sales is the appraisal issue.

How can you compete with bottom-feeder short sale Buyers? (I don't blame them).

Jun 12, 2010 05:10 PM #22
Rainmaker
1,164,917
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

Marcy - The entry level homes in reasonably good neighborhoods go really fast here.  The upper end houses - not so much!  Price rules the housing market right now as well.

Judy - I will hit the button to allow reblogging!

Deborah - Appraisals are causing an issue in a lot of sales.

Jun 12, 2010 05:47 PM #23
Rainmaker
314,170
Michael Russell
Keller Williams Realty Partners, Inc. - Overland Park, KS
Overland Park Kansas Real Estate

You have to offer them something that a short sale or foreclosure does not, a clean home that is not being sold as-is. I would think that a pre-inspection and a home warranty along with other incentives that the short sale seller or banks cannot offer can go a long way.

Jun 12, 2010 05:55 PM #24
Anonymous
Anonymous
Anonymous

Myrl,

The days of ignoring prices of distressed properties are long gone around here too - and, yes, traditional sellers have cause to weep. Your suggestions are all great ones that work, as long as the home is still within the right price range.

Jun 12, 2010 05:56 PM #25
Rainmaker
698,637
Sharon Paxson
HÔM Sotheby's International Realty, BRE License 01501912 - Newport Beach, CA
Newport Beach Real Estate - HOM Sotheby's Int'l Re

Myrl - you are absolutely right on. I would rather price it as the best value in the area to stimulate more activity and possibly above asking price offers. Allowing a home to be over priced will just allow it to sit there.

Jun 12, 2010 06:20 PM #26
Rainmaker
1,164,917
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

Michael - There is one thing a traditional seller has in their favor, that a "short-sale" seller does not, and that is the interferance of the a third party (bank).  But, still they must compete with price, because appraisal is an issue.

Irene - Those days are long gone here too!

Sharon - That's my thinking too!  Be competitive on price, hope for some possibly above asking price offers, and pray for a good appraisal.

Jun 12, 2010 07:37 PM #27
Ambassador
568,441
Rob Lang
At Home Kansas / www.AskRobLang.com - Lawrence, KS
Local Expert in Lawrence Kansas Real Estate Homes

A level-headed view is always a helpful reminder, thank you for sharing.

Jun 12, 2010 07:47 PM #28
Rainmaker
512,297
Patricia Aulson
BERKSHIRE HATHAWAY HOME SERVICES Verani Realty NH Real Estate - Exeter, NH
Realtor - Portsmouth NH Homes-Hampton NH Homes

While the pricing nowadays may dismay many a seller, It's the market these days and some sellers will have to "wake up" to the way it is, not the way it was.  Thanks for sharing , I enjoyed the post today Myrl and have bookmarked it for a friend of mine going thru this kind of deal as we speak.

Patricia/Seacoast NH

Jun 12, 2010 08:24 PM #29
Rainmaker
409,895
Michelle Francis
Tim Francis Realty LLC - Atlanta, GA
Realtor, Buckhead Atlanta Homes for Sale & Lease

Mryl, 

Excellent post.  A traditional listing, not a short sale or foreclosure is still majorly impacted by them!  Compete with fabulous condition and solid pricing like you said and you will fly off the MLS listing shelf.

All the best, Michelle

Jun 12, 2010 08:52 PM #30
Rainmaker
337,989
Agent Aaron Vaughn, REALTOR® Listing Specialist
Capitol Home Team | Austin TX - Buda, TX
The $500 Million Marketing Advantage

Myrl: I like you points, but fear they will fall on deaf ears. Sellers have a tough time accepting the brave new world of nontraditional "traditional" home sales.

Jun 12, 2010 08:57 PM #31
Rainmaker
325,145
Esko Kiuru
Bethesda, MD

Myrl,

Must read for traditional sellers who want results. Pricing it right is probably the hardest part as many sellers just refuse to believe how much values have dropped.

Jun 12, 2010 10:20 PM #32
Rainmaker
1,164,917
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

Rob - It truly is!  It may be shocking to absorb the facts about home values, but it is the only successful way to mark a home and sell it in today's market!

Patricia - I am certain todays prices dismay many a seller.  The other day, I was working with sales stats, and wanted to compare prices for this time last year.  Somehow, I managed to pull up for the same month but accidentally in 2007 instead of 2009.  I almost fainted!

Michele - So very true!

Aaron - I have been surprised by the number of sellers, who once they see the facts, somehow manage to absorb them and go on.  Still, there are those that cannot easily accept.

Esko - It's hard pill for many sellers to swallow!

Jun 12, 2010 10:36 PM #33
Rainmaker
977,734
Sharon Alters
Coldwell Banker Vanguard Realty - Fleming Island, FL
Your Fleming Island Relocation Agents.

Myrl, being a traditional seller today is like swimming with the sharks. It's not for the faint-hearted, either Seller or Realtor®!

Jun 12, 2010 11:04 PM #34
Ambassador
1,649,816
Fernando Herboso - Broker for Maxus Realty Group
Maxus Realty Group - Broker 301-246-0001 - Gaithersburg, MD
301-246-0001 Serving Maryland, DC and Northern VA

Your tittle says it all. . traditional active listings are so lacking. . specially the ones with realistic prices

Jun 13, 2010 06:56 AM #35
Ambassador
1,472,389
Karen Kruschka
RE/MAX Real Estate Connections - Woodbridge, VA
- "My Experience Isn't Expensive - It's PRICELESS"

Myrl  There is still resistance in Northern Virginia to list by "traditional" sellers due to comps on short sales and REO

Jun 13, 2010 11:18 AM #36
Ambassador
1,258,175
Erica Ramus
Erica Ramus - Ramus Realty Group - Pottsville, PA - Pottsville, PA
MRE, Schuylkill County PA Real Estate

Yes we do have many bottom fishers out there, and it can really get the home sellers  down.

 

Jun 13, 2010 12:00 PM #37
Rainmaker
482,734
René Fabre
First American Title - Seattle, WA
New Media Marketing

Price rules for sure. One of the biggest challenges agents have right now that I see is the conversation with the seller over pricing. I spend a lot of my time now analyzing inventory stats for clients to clearly understand pricing in a particular neighborhood. It changes so much from place to place. In Seattle, some neighborhoods are actually appreciating finally, and some are still on a downward trend. I witness a lot what appears to be a compromise reached between the listing agent and the seller. Because it's not put on the market at the price point the agent new it would sell at, it sits... then they play chase the market down over the next several months and if it sells, that ends up being less than the price the seller wouldn't accept in the beginning.

Jun 13, 2010 12:32 PM #38
Rainmaker
850,942
J. Philip Faranda
J. Philip Faranda (J. Philip R.E. LLC) Westchester County NY - Briarcliff Manor, NY
Broker-Owner

Pricing is so critical. It is a fact that aggressively priced homes sell faster and for a higher percentage pf asking price than those homes that are stale. 

Jun 13, 2010 10:11 PM #39
Rainmaker
1,164,917
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

Frank and Sharon - You are so right about swimming with sharks.

Fernando - I have seen some wonderful traditional listings.  But they have been priced well to be competitive, and condition has been everything.

Karen - There has been some resistence here too.  I have advised some of my past clients to sit tight, if they can.  Especially if they don't need to sell right now, and aren't upside down on their mortgages.

Erica - Sometimes it appears to be a death spiral on prices.  A distressed property sells really low in a neighborhood.  And the next person to market their home in the area, undercuts that price by 10% or so, and on goes the cycle.

Rene - This sentence in your comment says it all, "One of the biggest challenges agents have right now that I see is the conversation with the seller over pricing."

J. Philip - You're right, aggressively priced homes sell faster.

Jun 13, 2010 10:39 PM #40
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Rainmaker
1,164,917

Myrl Jeffcoat

Greater Sacramento Real Estate Agent
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