Are You Talking Yourself Right Out of Real Estate?

By
Real Estate Agent with Dockside Realty

What do you do when you receive a call from a potential client and they ask you how the real estate market is? 

Recently I had such a call from a lot owner here at Lake Anna.  I told him the truth.* 

I told him few lots are selling especially non-waterfront, what we call access lots.  (We are selling a good number of homes on access lots.)  We have a very large inventory of access lots and the prices have come down to the point that he would probably be lucky to sell for $xx,xxx even though his lot has an assigned boat slip.  He would have been able to get perhaps $20-30,000 more for it when the market was hot.

This evening I received a call from a potential buyer looking for investment property at Lake Anna.  Helake anna waterfront homes only wanted to buy a waterfront home to rent out.  The requirement was that the rental income cover his monthly expenses, mortagage and taxes.  Putting the minimum down, the mortgage payments would be quite high. 

Waterfront homes begin around $500,000 and go up to over $2,000.000. The caller was looking for a waterfront foreclosure thinking we might have a number of those and they would now be priced very low.  Well, thank goodness, that is not the case. 

There are a number of beautiful waterfront homes now on the market priced well below what they could have sold for when the market was very busy.  However, they are still nowhere near "fire sale" prices.  I do not know of any properties here that will fit his requirements and I told him so.**

There are certainly investment possibilities here if the buyer is able to take the long view.  Buying now at reduced prices and holding it until the market peaks again will net them a fine return but it is not going to happen overnight.

  • How is the situation where you are and how do you respond to sellers?
  • When buyers ask you if the bottom has hit yet what do you say?
  • Do you find yourself talking yourself out of listings?
     
  • Or working with buyers?

I believe I am very optimistic about real estate.  I could not have been in it all these years through this downturn and the others I've experienced if that was not the case.  Nevertheless, I do not want to give a false impression either.  Sometimes that means turning away "business."

*At the end of our conversation, Mr. Seller thanked me for my honesty and said for me to call him when I thought it would be a good time for him to sell. 

**Mr. Buyer said he would save my number and call me when he is able to buy a waterfront home for his family.

_________________________________________________________________________________________

welcome

 

If you or someone you know is thinking of buying or selling property at or near Lake Anna, please contact Kathleen "Kate" Elim.  Kate lives at Lake Anna, knows Lake Anna, loves Lake Anna, and specializes in Lake Anna area real estate. 

Call Kate at 540-226-1964 or by e-mail at lakeanna.kate@gmail.com. Be sure to check Kate's Web sites  and blog at http://lakeannaandbeyond.com/ or http://lakeannacountry.com/

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 ©Copyright Kate Elim 2013

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540-226-1964 cell

lakeanna.kate@gmail.com

For easy property searches check out my web sites: katesellslakeanna.com

or

lakeannacountry.com

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Location:
Virginia Spotsylvania County Spotsylvania Lake Anna
Groups:
Realtors®
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Posts to Localism
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Tags:
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Rainmaker
217,645
Joan Mirantz
Realtor, GRI, CBR, SRES - Concord New Hampshire
Homequest Real Estate

Kathleen...The saying all RE is local would definately apply in a vacation area...they just don't make new waterfront...most people aren't going to sit around and wait for the price to drop!

June 19, 2008 11:06 PM
Rainmaker
325,715
Sondra Meyer - Peterson
Colorado Horse Property Specialist
Star View Real Estate

Kathleen, I agree with you.  Honesty is the best policy.  The type of buyers and sellers I want to work with will appreciate that.  You never know, but he may tell someone else about his experience with you and you could end up with a referral. 

June 19, 2008 11:25 PM
Rainer
65,414
Alyce Martin
Albuquerque - THE Place To Be!
The Realty Group, LLC

Kathleen - "Just the facts ma'am" - I tell people the truth, why do anything else?  I have, however, suggested to people that if they don't have to sell their home and they do not wish to adjust their price to meet the market that they say put.  You sound like a good egg.

June 19, 2008 11:39 PM
Rainer
274,084
Adam Waldman
Realtor - Long Island
Westcott Group Real Estate Company

KATHLEEN - There is no point in being anything but honest with people.  If they still want to list in the current climate, at least their expectations will be realistic.  As far as the investor is concerned, all you did was provide truthful information about what the investor was looking for.  It's all part of finding motivated buyers and sellers.  Why waste time pursuing transactions that are unlikely to happen?

June 20, 2008 05:01 AM
Rainer
118,403
Nannette Turner Saunders
Hampton Roads, Virginia Beach
Associate Broker Keller Williams Realty

Kathleen our markets are simular.  Folks call asking me for forclosures and etc... Sorry we just don't have a lot of fire sales. There are some but you must move quickly and have the capital to do so.  Real estate investing is not for the faint hearted and it is not as easy as the late night tv shows make it out to be.

June 26, 2008 05:34 AM
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Ambassador
470,881

Kate Elim

Realtor 540-226-1964, Selling Homes & Land at LA
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Additional Information

Kathleen "Kate" Elim
Dockside Realty
4634 Courthouse Road
Mineral , VA , 23117 United States
540-226-1964

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