The Sky is Not Falling

Buyers and sellers who put stock in "Chicken Little" media reports have come to learn through their own experiences that there never was a "bursting bubble". While the near hysterical reporting by some of the more established media may have created the hoopla that has been selling papers, Realtors across the country have in fact been selling properties that are correctly priced for the market they are in.

To be clear, a sellers' market occurs when there are more buyers than there are properties on the market. With very low interest rates, buying frenzies can occur as the home prices soar. A Realtor may characterize such a market in this way: "I could drive down the street while hanging a Purchase and Sale form out the window and buyers would run to jump on it."
A buyers' market occurs when there are more properties on the market than there are buyers. If the interest rates begin to rise, the buyer has less purchasing power and home prices will come down. In many cases, the sellers who reduce their homes in order to sell them, become buyers who now reap the benefit of the reduced homes they wish to purchase.

Every property sells. What cannot be overstated is the number one reason why a property sits too long on the market. THE PRICE IS TOO HIGH.

When your Realtor or Appraiser prepares a price analysis on your home, it must be performed without emotion. Location, condition, age, amenities, updates, maintenance, style, features and a myriad of factors are compared against properties that have actually sold. That does not mean that your Realtor is insensitive to how deeply affected you are as a seller both emotionally and financially by the value ascribed to your home. Realtors are homeowners too, but as professional interpreters of the market, they must be the "messenger" no matter how difficult the content of the message.

Sellers should obtain more than one price analysis on their most valuable asset. Professional opinions may differ and a confident Realtor will encourage the seller to make comparisons. A REALLY confident Realtor will not engage in the business of overpricing merely to obtain the listing. The substandard practice hurts all sellers, buyers and Realtors.

Learn to trust your instincts. You do not have to BE a Realtor, but it sure would take a lot of the heat off if you could BELIEVE your Realtor and choose your price intelligently by going over the comparisons that the Realtor presents to you. Put on your "buyer's hat". Would you pay $XXX for your home when the home down the-street is newer, larger and has a three car garage?

Numbers have no emotion........neither do mortgage pre-approvals, appraisals, comparative market analyses, economic indicators, etc. The best Realtors however sensitive, emotional and compassionate as they may be know that what will bring you to the closing table is their intelligence and ability to price and market your home correctly.

The next time you open a newspaper article that reads "The Sky is Falling and We're All Going to Die!!", the Realtors, Sellers, Buyers, Lenders, Lawyers and Economists who know better, suggest that you do the following to get your money's worth out of that print media. Roll the paper up as tightly as you can and stack it with the other rolled up prints right next to the fireplace. They make terrific kindling. If you do not have a fireplace, you may wish to use the paper to line your bird cage while thinking of what Chicken Little would say in today's market. "The sky is not falling. It's just not the limit."