Updated November 2009 - by Roger Zerener

After a relative slow last winter (October 2008-March 2009) we have experienced an active late Spring, Summer & Fall.  We are seeing good residential buyer activity due to a combination of favorable interest rates, mortgage interest tax deductibility, the $8,000 first time Buyer tax credit, a good inventory of homes with motivated Sellers, a relatively stable economy (compared to some parts of the U.S), and some signs of economic improvement.  We now also have existing homeowners who are considering “moving-up and on” asking questions about the new $6,500 tax credit for which they may be eligible.

A dark cloud on the market is the increasing unemployment rate.  It appears to me that the folks in Washington are trying to convince us that we have turned the economic ship around.  However,  based on the number of  local folks I know who have recently became unemployed or experience hour cut-backs, I think we may be a ways from shore.  I don’t even like to think about the national debt and who we owe it to.

Across the board we see Sellers coming to the realization that they have to be reasonable in their initial pricing, properly prepare the home physically for the market, and market it professionally.  In some cases Sellers are paying some concessions for Buyers such as loan cost or home warranties.  At this point this is not seen as the norm.

One difference I see in this market as opposed to “slow-downs” or recessions of the past is the actions of Lenders who have acquired properties or “repos.”  In past markets Lenders have generally taken more of patient attitude of maybe “fixing” a property to a condition they considered marketable and patiently marketing the property, maybe taking months & months.  Now we have these Lender/Owners generally taking a more aggressive approach to marketing – cutting their losses and getting the property off their inventory.  In numerous cases we have negotiated “short-sales” with the Lenders on the behalf of Buyers allowing them to sell their home for less than their loan balance – hopefully salvaging some of their credit rating in the process and avoiding being legally  pursued for the loss.

One of the biggest mistakes I see typical Sellers making is taking the “we can always come down on the price” attitude.  That is simply not true, which I realize is difficult for Sellers to understand.  It goes something like this.  When a home is priced too far “above the market” many Buyers will avoid even looking at the home, or if the look, won’t allow themselves to get to the point of making an offer and opening negotiations.  They simply move on to a home that is properly priced.  Buyers are generally more “market value savvy” then Sellers give them credit for.   Experienced Buyers Agents are also more likely to show a home they understand is properly priced.  

After a time the overpriced home remains unsold and the “public market” starts to psychologically assumed there is something “wrong” with the home.  Eventually - likely after blaming their first Agent or two - the Seller decides maybe they better lower the price.  At this point it becomes very difficult to “re-educate” the public, and Buyers in the market after each price reduction.  If this chain of events occur, in many cases, the Seller eventually reaches such a level of emotional or financial frustration that they end up selling well below the market value of the home. 

One service we offer, which I feel is very valuable to Sellers is by combining our years of daily experience in the local market with solid market sales information,  help them properly price their home for today’s market.  The trick is in proper objective pricing.

We see our mission, when working with Sellers, is to achieve the best possible sales price, in the fastest time frame, while making the process as pleasurable as possible.

That’s my two cents worth for now.  I am always glad to talk real estate.  You can call me at 316-540-3124 or email roger@farmandhomeks.com.

Thought for the Day:  At Farm & Home Realty our Agents have years of real estate experience.  You don’t have to train them.  I am proud be associated with each one of them.

Best Holiday Wishes!