April 29, 2008 - A Very Dead Mouse

The trap had caught the poor thing squarely across the head. The rest of the body was so unblemished, the mouse looked like it could be alive, except for the severely flattened skull, the result being that it was almost unrecognizable at all. I did have to look twice, but on the realization that I’m “it” and that noone would be back in the house save a potential buyer, I took up the charge to remove the offending rodent from the premesis.

Aaaahhhh! The things you do for love….or money. Here I am, at one of my listings, a very nice home, fully furnished, great views, all with a price tag approximately $100K over what it should be. I know it is overpriced, as do all of my collegues, whom by now have seen it and made the appropriate mental note (the kiss of death in this market). And while the owner has, on numerous occasions, been apprised of the fact that his home is too expensive, he is as yet unwilling to make any sort of “downward adjustment”. 

“Consensus is that the home should be priced at about $900K.” I say, feeling apologetic, resigned and decidedly “flappable”.

Mr. Seller replies, sounding confident, cool and UN-flappable. ”Look, if someone likes the house, they’ll make an offer. I just can’t help feeling everyone’s playing games over there.”

Playing games?! Is he serious?! I think to myself. Wow, wouldn’t it be great if this was just a game and we could all call it a day and go home.

“As you wish. I will continue to market the home to the utmost of my ability. I’ll keep you posted.” I say and sign off.

He thinks this is a game. Wow. Every week, I hear a story about someone else going bankrupt as a result of our “market slowdown”. Big, established developers are giving fancy houses back to the bank, little-guy contractors are bidding jobs tens of thousands of dollars below cost just to “keep the wheels moving”, and real estate brokers are getting second jobs at Costco.

Sub-prime lending, looming recessions, and all other factors aside, one of the big culprits in our declining housing market is “SELLER OVERCONFIDENCE”. Mr. Seller has decided to go to market with his home yet, while he has heard all of the news about the market being “soft”, it hasn’t clicked that it means its “soft” for everyone, including him. He wants to market his home at a top-of-the-market price, even though that’s a ship that sailed two years ago. In fact, with things as uncertain as they are, many brokers tell clients to go to market at a price reflecting any further decrease the market may have in, say, 90 days.

Buyers today are shrewd at best and mercenary at worst, but they all know that they can afford to be picky. Some go so far as to pre-qualify most initial showings as I’ve detailed in previous entries. They have lots of inventory to choose from, including that of builders and developers who are undercutting the market by hundreds of thousands of dollars just to get out from under expired construction loans.

And now, Mr. Seller has created a stand-off between his unrealistic expectations and a buying public that feels taken advantage of. And I, like our poor little rodent friend, am stuck in the middle and will meet a similar fate because as sure as sure, at the end of our contract if not before, Mr. Seller will become frustrated with my efforts (or lack thereof in his mind) and list his home with Mrs. Busy-Broker…..for $100K less.

 

April 22, 2009 - Attach from Cyberspace

“Just had to say it. ARE YOU OUT OF YOUR MIND…this  home at this price has no CHANCE of closing.. GOOD LUCK!!!!!! - 

That from steve at sfhorn55@aol.com who has never been into my house but felt the need to offer marketing advice regardless. Intent on not simply getting offended and perhaps gleaning a shred of enlightenment from his comment, I turned to members of my networking group, all professionals in the field and asked for a no-holds-barred opinion of value. 

Apparently, I’m not THAT out of my mind, and with the price issue somewhat laid to rest, I turn to the bigger topic, one on everyone’s mind to some degree, “How to Sell A Home These Days With Guys like that Out There”.

Unarguably, it is a buyers market out there right now. Prices don’t just drop, they tumble. Lofty goals have turned into crumbled dreams and everyone knows someone that is or soon will be bankrupt. The housing bubble burst and the collateral damage is hitting everyone.

What amazes me, however, is that people refuse to see themselves as part of a whole. Until they are bitten squarely on the ass by these events, they really, really think it doesn’t or won’t affect them. Today, they are Buyers in “the hottest buyers market in 20 years”. They are going to make a killing on the purchase and not only do they want that DEAL, they want blood, it not being good enough if the guy on the other end isn’t lying gasping for breath on the other end of the transaction.

Then they realize, “Oh, I need to sell my house to buy this house.” Suddenly, they are sellers. OOOOPS!

Or, they have this wonderful loan with a terrific interest rate, locked in ready to close in two days. Then, without warning, POOF! The lender closed it’s doors, gone. No explanation, no apology, no loan, no house. Drat!

If not yet ready to be active participants in the real estate game, some buyers are sending their brokers on the most evil of errands….THE PRE-OFFER OFFER:

“Hi, this is so-and-so with such-and-such. I have someone that’s interested in your house. Would you take blah-blah for it?” says Broker X.

“Have you been in my house?” I reply.

“Well, no.” she says.

“Blah-Blah wouldn’t even cover the cost of construction.” I say.

“Well, it’s worth a try. Bye.” Click.

People, I live in a small town where it’s easy to see cause and effect. Real estate brokers getting second and third jobs, contractors leaving town. Fine, people said, there were too many brokers and contractors anyway. Then Lo and Behold, suddenly the restaurants and boutiques start closing. (Of course, the liquor stores are making a killing right now but perhaps that is another post altogether).

But we are a microcosm, a reflection of the whole that is the rest of our country. The thing I’m getting around to is this, HAVE A LITTLE RESPECT. Some people have worked hard, leveraged everything they have, and done it right, (not with silly loans) and have simply been caught in a net set by others above and beyond what any of us could have controlled. 

This storm will be weathered by some, not all. But if all of us just take a step back and respect each other just a little bit, it’ll be a little easier. And remember, what goes around does come around. That guy you screw today could be there waiting for you tomorrow. It happens every day.

 

b

It’s two o’clock on a sunny Saturday afternoon. I’m unlocking the fifth house on our little tour of homes for Mr. and Mrs. Jones who have decided to move to our lovely little town from Jonesville, USA.

They have a long list of must haves and must-have-nots.

• View - √
• New construction - √
• 3 beds, 3 bath, 3 car garage - √
• Gourmet kitchen with all stainless, slab granite and upgraded appliance package  - √
• French country cabinets and “lodge-y”, because, after all, this is a mountain retreat. - √
• And so on.

“Honey, come look at this. Hot and cold running water in the garage. Why would they do that?!” says Mrs. J.

“So that you can was your dog, or car, you know, with warm water.” I say, smiling, trying to sound enthusiastic.

“Oh, God! I wouldn’t dream of doing that myself.” says Mrs. J, turning back into the house, a critical eye taking in the features, rating them and subtracting dollars from any offer she may make.

Enthusiasm. Must be perky. But it was taking considerable effort because my eyes had started to water in earnest, my throat was like razors and my nose was stuffed beyond hope. I was getting light-headed too and know I have to get back outside before I lost it.

“HONEY!!!” came an exclamation from the master suite. “A jetted soaking tub!!!!” screams Mrs. J. “Now this is just terrific!”

I’m out the back door just in time for the black spots to creep into my vision, leaving the Jones’ to OOO and AAHH over the tub.

WHAT, you ask, IS WRONG WITH HER?

It’s called a CHEMICAL BATH. Happens almost every time I walk into a new house, regardless of price point, that’s been shut up and hasn’t ventilated properly. Sometimes I’ll get a headache, sometime nausea, but it always starts with the watering eyes and sore throat. The chemicals from the new carpet, finished wood (or wood product) flooring, MDF used for base and case, poly-laminates, all of these things are off-gassing full force in the first few months after installation. Not nice to be around when the house is being accessed daily, but combine that with no ventilation, it’s like a gas chamber. To me at least.

AND…I’m just fine shortly after getting into the fresh air.

I say it happens almost every time for a reason. It does NOT  happen in the houses my husband and I build. Why? Because we make every effort to stay away from the synthetic carpets and other culprits that contribute to that chemical bath. Why? Because I may very well have to live in one of my houses at some point and can’t stand it. Further, I really believed that people cared about living in a clean home, one that didn’t give them headaches, allergies and general discomfort.

Snapping back to reality and realizing that the Smiths are still inside, I steal myself to go back in. I’m greeted my Mrs. J. who informs me they would like to make an offer.

“What do you know about the sellers?” she asks. “Are they MOTIVATED?”

“I’ll call and have a chat with the listing broker.” I say, closing the door and locking it behind us.

My head has cleared some and I reflect that if I cared just a little less about building clean homes and a little more about jetted soaking tubs, maybe I’d be onto something.