More and more sellers are coming to grips with the mere fact that its not "always about them.
" I recently listed a home under my new Flat Fee MLS listing program.
During the discussion I got the distinct impression that the Seller wasn't listening.
I remember telling her that REALTORS were at a quandary.
REALTORS are still trying to figure out where and when the bottom of the market will hit.
For months, I've seen market values tank.
I do BPO's, (Broker's Price Opinion) whenever banks, lenders, mortgage empires need an opinion of value they pay me to perform this service.
Most often this is done when a home is about to go into foreclosure.
Since September of 2008, the demand for BPOs' have drastically increased.
I tell you this to understand that I determine the value of properties every day.
On every BPO the lender wants to know about the subject's market conditions, subject marketability, sales in the neighborhood, listings in the neighborhood, repairs needed to bring the subject up to marketable condition, and lastly market value.
After I gather recent sales and recent listings that compare to the subject I then have to determine market value.
What I know for certain is that the bottom has not hit, yet! I remember telling my client how important pricing had become.
That today's buyers were typically first time home buyers, tech savvy, and hunting for the biggest and best house at the most competitive price.
I told her how our market was driven by foreclosures.
That over 30 % of all homes SOLD had been foreclosures.
And that over 1/3 of homes SOLD this year had been to first time buyers.
She turned a deaf ear.
She hadn't heard a word I said.
I had suggested a price that was competitive.
She would have none of it.
This was OK with me, because with the flat fee MLS system, she pays me on the front end.
It puts the owner in charge of the transaction; they take charge of the marketing, showings, answering phone calls, and setting appointments and save monies by not paying a portion of the typical real estate commission.
Yesterday, I got an email from her.
She was feeling anxious now because her neighbor had recently put their home on the market "and priced it very competitively", obviously trying to steal her thunder.
She wanted to know if new pictures on the internet would appeal to more buyers, or it she "fluffed" things up if that might make a difference.
The truth is, at this time buyers determine your home's value.
Buyers create the market.
Today, sellers more than ever have to take heed of the pricing issue.
The market value of your house is created by buyer demand.
As more buyers come to the market and begin to squabble over properties, then and only then will market values increase.
But for now, as market values continue to decline, Sellers beware, price your home competitively or your neighbor just might "steal your thunder.
"