Saturday
February 13, 2010

It has been a hectic week in real estate land. I think Spring market may actually be here! There is no question that the tax credit is having a major impact on what is normally the best time of year for real estate agents.

That said, I need to remind sellers: IT IS STILL A BUYER’S MARKET!!  Enter this market at your own peril! Here there be dragons! (Click on the “Seller’s” Tab to read what I say about selling in this market.) On two separate occasions JUST THIS WEEK I’ve encountered situations where the sellers – not willing to acknowledge the realities of the market place – are either priced ridiculously high OR, even after 5 months on the market with no nibbles, are diddling around with a bona fide offer because of what they perceive the value of the home to be. This particular seller is basing her opinion about her home’s value on what she paid for the property plus improvements. Unfortunately, the number she arrives at using this formula is total fiction. It sounds logical, seems to make sense. But the first clue that her logic is faulty should be that this is the first offer she has received after 160 days on the market!

NEWS FLASH FOR SELLERS: Despite whatever evidence you may have to the contrary, a home is ONLY worth what someone is willing to pay for it – right now, today – in this market.

Conversely, also twice this week, I have seen property come up for sale on Wednesday and be under contract by Friday. Why? Because the properties were well priced – even priced BELOW market! UNDER-PRICING YOUR PROPERTY IS THE FASTEST, SUREST WAY TO MAXIMIZE YOUR SALES PRICE.  In fact, it is the ONLY way you can create a sense of urgency in the mind of the buyer. Today’s buyer is cautious about making a financial mistake. Trust me when I tell you that they fully educate themselves before jumping into the fray. Today’s savvy buyers KNOW the minute they walk in the door wheter or not the property is priced appropriately. When they perceive that it is UNDER-valued, they get excited and BUY! 

SECOND NEWS FLASH: As a seller, time is NOT your friend. Like day-old bakery, the longer your home sits on the market, the more value it loses.

And for those sellers that are upside down on their properties:  I’m sorry – but there is no simple remedy to your problem. If your home works for you and you can afford the payments, then just stay put and ride out the economy. Someday, you will either have your home paid off OR times will get better and property values will begin to rise again. Either way, you will once again have equity in your home. In the meantime, staying put is the best advice I can give you. After all, you have to spend money to live somewhere – may as well be in your own home.

If you CANNOT afford your payments or the home no longer works for you – for whatever reason – DO NOT CONTINUE TO THROW GOOD MONEY AFTER BAD!! EVEN MORE IMPORTANTLY: DO NOT BECOME THE VICTIM OF A CON ARTIST. A con artist is a professional (as in “makes a living at”) separating you from whatever precious few dollars you may have left! Just walk away from it all. Resign yourself to the reality that you made a bad desicion – or that life is unfair or - whatever your situation may be. The sooner you come to grips with the reality of the situation, the better it will be for everyone – most of all for YOU. If you have to make a decision as to whether you should spend your last $1,000 on a loan audit OR on keeping a roof over your family’s head – well, the choice seems clear. Spend the money on renting an apartment so that you can get on with your life.

Staying and fighting will often just leave you more exhausted, more depleted and more vulnerable for dealing with the inevitable. Don’t waste precious emotional and spiritual energy fighting a lost cause. Instead, use that energy to re-build your life. Learn whatever lessons you need to learn from the experience and move on. There are many government agencies poised to assist you should this be your situation. Click on the “Foreclosure Prevention” tab to access these programs now.

It is not in my nature to tell people things they don’t want to hear or to be the bearer of bad news. However, as a professional real estate agent with 30 year’s experience, I feel an obligation to tell you what I see happening every day.

I do well when YOU do well.

“To Your Success!”
mary!

Foreclosed Homes In Chicago