Anonymous letter from a seller
June 13, 2006
I received this email from an anonymous reader on the frustrations of selling a home in the current market. Published here by permission. An interesting perspective and some good points:
Dear Buyers and Sellers,This reminds me of an email I sent to my listing clients last November. Read it here. Pay particular attention to the five (5) "Be's." They are more pertinent now than ever before.
I would like to share some of my observations and thoughts about the current conditions in the real estate market:
1) The real estate market took an abrupt turn last summer.
2) Buyers went through hell in 2004 through spring of 2005 in the "seller's market".
3) Many if not most current sellers are still over-priced.
4) Real estate prices will continue to drop (some).
5) The cost of housing became (and still is) outrageous.
6) The market is scary and a bit crazy right now.
7) There is nothing normal about the last two years and this current market.
But who is making it like this? US. BOTH Buyers and Sellers! And the media. Can we all get a little less emotional (I am trying very hard to contain mine) and a bit more serious? There are sellers who have significantly lowered their prices and need to move. Buyers... get out there and find the bargains! That is what a "BUYERS" market means. Then write a realistic contract!
Buyers and Sellers seem to be stuck at an impasse which is no less crazy than last spring. The pendulum just went in the complete opposite direction. Does that sound like typical market behavior that is based on actual economics OR overly reactionary media and consumers to all the BUBBLE talk? Don’t listen to the media. If you want to buy or sell, and are serious...make it happen.
SELLERS:
Sellers are still priced too high. Unless you low ball your property, your just going to sit anyway. If you get an offer that is within the range of your asking price… TAKE IT, you may not get another. Do not bother to put your house on the market unless it is in mint condition OR adjust your price lower. Do not list your property just to "see" what you might get. You will be disappointed and you are wasting people's time. The frenzied days of price appreciation are OVER... get over it and work within THIS market. Enjoy the equity that you have. The number one rule for a seller is: don’t be greedy!
BUYERS:
Buyers need to learn a new term... "bridge loan." You cannot expect to sell your property in this market within a time frame a seller is willing to wait for you. Home sale contingent contracts are typically unacceptable to a seller AND a buyer because it precludes you (the buyer) from accepting a contingent contract on what you are trying to sell. Otherwise, it is an endless chain of contingencies. A bridge loan or other form a financing will carry you through the time it takes to sell your home.
If you have to sell your home to buy another one, understand what your home is worth in this market. Do not assume you will get a certain amount of equity and do not waste seller's time looking at houses that are out of your price range. If you absolutely cannot "risk" having a bridge loan... ask the seller to help out with a few months of mortgage payments. At the very least get your place on the market or have it ready to be listed immediately. And finally, don't write a ridiculous contract and expect a seller to wait around for you... try getting a better bottom line and getting some cash.
TO EVERYONE:
Stop "playing" real estate and leave the buying and selling to those that are serious. Be realistic. Your house is not immune to this market... a slow market applies to everyone. Let's end the stand-off and get back to a normal market. Everyone is going to have to bend if we want to move on and move up. Everyone has to take on a little risk. That's life. That's real estate.
I am sure each buyer out there looking has a similar gripe about sellers. Let's hear your stories...
Sincerely,
A realistic seller... looking for a realistic buyer.
PS: My home is for sale, meticulously kept and maintained in a desirable area. I have reduced my price 27% and ready to make someone a good deal!
Comment on Anonymous letter from a seller. Follow this article is off. More articles like this one filed in: Buying & Selling Real Estate
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I just can't find the motivation to buy. We sold last March and I'd love to own our home again. But we're renting a McMansion (that failed to sell) and are able to save so much more cash than if we were to buy a dump for the same $$ per month.
In the early 90's, we bought our first home in Northern VA because renting cost more per month for the same property. I considered that a "buyer's market".
If I buy a home and I can't sell it and break even, and I can't eve conceivably *rent* it out and come close to breaking even, I can't see the point in a large mortgage. Too risky for me, thanks.
And a Bridge Loan? You gotta be kiddin' me. I'd rather just sell my house first and then buy a new one. It's not like I wouldn't have ample choices.
The housing market is crashing. If you're selling and you need to get out, I advise you to lower your asking price so that you are the best priced house in your school district.
Don't believe me?
It will be tougher to sell your house in 6 months or a year when it's clear to all buyers that prices are falling. Once that happens, any buyer who can wait to buy WILL wait to buy, because why should you buy a house when it's going to be worth less in 12 months?
Anyway, Google a housing tracker and look at NVAR dot com - you'll see inventory in Fairfax is about 300% over 2 years ago.
Don't be greedy - remember, pigs get slaughtered.
And when you get a buyer and, after inspection they want you to fix 6k worth of stuff, offer them 4k back at closing and get the hay out of the market!
Don't be a pig!
And if you took a lot of home equity out and you are upside down if you lower your price, then you have a painful financial death in front of you and you have my sympathy.
Tough lesson late in the game, but well worth paying attention to. Understand that the media typically uses national statistics which will be essentially useless in your local market.
Here's a tip for sellers. Every property has an average number of days on the market. The number is influenced by house style, location, market conditions and price range to name a few. If your property hasn't sold within a reasonable period of that average, it is priced too high.
Before you list your property with a Realtor, ask to see the "comps" he used to establish the selling price. The comps should show comparable structures, lot size, location and the number of days on the market of those properties sold. Be sure the comps are timely and not of a property sold a year ago.
For sale by owner (FSBO)? Buyers beware!
Thanks for the letter.
Dave
I think that perhaps the most insightful statement is the one advising against listening to "the media." Most published reports tend to play to consumers' fears, which is a shame.
Thank you for this letter. It speaks volumes.
--Jim
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