If a Seller actually wants to Sell…….
June 25th, 2009 categories: San Diego Real Estate, Selling San Diego Real Estate
There are many listings of San Diego homes on the market where the Seller has priced the home to test the current market. The truth is that any good real estate professional that facilitates this is also participating in the fantasy of a unchanged reality. You will notice that I said, any good real estate professional. The unprofessional has a business plan and a process that I neither understand nor wish to discuss in this post. I can tell you from experience that if a property is over priced, isn’t staged properly or has any noticeable amount of deferred maintenance it isn’t likely to go anywhere and ends up languishing on the market wasting time and resources.
The most successful sellers in todays San Diego Real Estate Market should not be driven to list and sell by their bottom line. The priority of the move must outweigh the actual dollar consideration. When that is not case, there is a much greater likelihood that the seller in our current market will be staying put.
Playing the let’s try this amount, then wait and see game and then scrambling to try and save a possible transaction is too often the sad consequence of a Seller not being properly prepared for what is before them, either emotionally or financially. The difficult conversations about price and value and today’s appraisal process need far more attention and discussion than they are getting. This discussion needs to be presented in the context of the current changed market until both the seller and listing agent see clearly what the correct course is ahead of them.
I can cite an example where the comps showed clearly what the value trends were in a subdivision of like homes and this particular property was nicely upgraded. The list price would vindicate what the Seller believed about the list price. That a Buyer would in fact pay the higher than current market price. The stark reality hit home when the property didn’t receive the value it deserved. But with the new appraisal rules and some inherent problems with that, the deal fell apart as many do. We can’t change reality and we have to conform to the rules even if we disagree with them and I do. But it doesn’t help the consumer get on with their move if we just stand and declare we are right in our opinion. Out task is get the property conveyed to the new Buyer. The bottom line will only get worse with time so it is incumbent on us to to help the Seller realize that if the actually want to sell, this is what has to be considered.
The point I make as The Voice of San Diego Real Estate, is that when a Seller is motivated by the priority of the move and the price secondarily, these things may not happen as often. But being realistic, they will still happen because we are not always dealing with appraisal opinions that are by appraisers that know the area market as well as may be needed. Making an appeal is possible but usually successful.
We must all take seriously the declined market values that have occurred and help prevent our sellers from making these same mistakes. Today’s market is different in so many ways. The lenders require more from the borrowers in terms of assets and credit and the process eliminates many many potential buyers. The appraisal process is more costly and has tighter guidelines than in the past and adds a new burden on the Seller. The new lower property values are still showing decline in many areas and this isn’t likely to change anytime soon. In past down markets, once the market stabilizes the values began to rise again. At least a modicum of appreciation. I don’t see that happening in most segments of our San Diego real estate market for some time to come.
If you are a seller and you want to sell, the market will welcome you. Your task though is ever greater than in the past in that you must clearly understand how you need to present your property in appearance and price . Then of course in how you may need to respond to the Buyer’s offer to have the deal close. Appraisals can come in low. Buyers can make unreasonable requests but that is the new market today and sadly it will be with us for some time. I can and will provide you excellent counseling to get your property transaction closed. But I know how difficult and frustrating the process has become and and you have an advacate in me that will do my very best to help insure the purchase closes escrow.
