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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  1. Debra Davis 06/12/2010 10:17 PM
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Comments 40 New Comment

Ambassador
1,422,984
Karen Kruschka
- "My Experience Isn't Expensive - It's PRICELESS"
RE/MAX Real Estate Connections

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

June 13, 2010 11:18 AM
Ambassador
1,200,789
Erica Ramus
MRE, Schuylkill County PA Real Estate
Erica Ramus - Ramus Realty Group - Pottsville, PA

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

 

June 13, 2010 12:00 PM
Rainmaker
430,693
René Fabre
New Media Marketing
First American Title

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.

June 13, 2010 12:32 PM
Rainmaker
814,135
J. Philip Faranda
Broker-Owner
J. Philip Faranda (J. Philip R.E. LLC) Westchester County NY

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. 

June 13, 2010 10:11 PM
Rainmaker
1,068,845
Myrl Jeffcoat
Greater Sacramento Real Estate Agent
GreatWest Realty

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.

June 13, 2010 10:39 PM
Rainmaker
1,068,845

Myrl Jeffcoat

Greater Sacramento Real Estate Agent
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