Selling A Home in 30 days in today’s market!

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Orlando Weekly Market Update 10-13-06
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Selling your home in 30 days is still possible today as it was last year. The only thing that has changed is how you go about it. Last year, or at least say the better part of last year around August (when we saw the changes coming), all you basically had to do was to put a for sale sign in your front yard, place it in the multiple listing service and bingo, you would get a contract at or above asking price within a few days or less.

Today the system still works the same way; however, what has changed today is the pricing approach to selling. There are still buyers out there, they are still willing to make fast offers however they are not willing to make fast offers on homes which are over priced. Buyers are very careful in making offers because they feel prices are dropping and they do not want to buy a home, which will lose value over the next 2 years. We are seeing homes bought within the last 6 month and now being resold and sellers taking a big hit.

I am sure you are aware we are in the process of experiencing a 2-year slide in housing prices.

So, this weekly updated is directed to sellers who have to sell! On the urgency scale of 1 to 10 they score a #10 in the desire to sell and understand that in today’s market the goal of selling is not so much about the profit, but being able to sell at all. If profit is your sales motive, please wait for the next 2 years because this is not the time. If you bought a new construction home 20 months ago and it just got finished and you are closing, with the intent to flip it expect to take a big loss or rent it out. I see subdivisions with 50 to 80 homes for sale, the builder is still selling and sellers are trying to sell against the builders with the incentives they provide. Some of these homes have been on the market almost for 300 days and people wonder why it does not sell.

• Without question, it is incentive and price driven. Therefore, we are offering incentives to the buyers and incentives to the agents, and provide strong marketing and this competition is a winning one. However, incentives alone do not drive the sale and therefore it is price. Let’s learn from the builders, they offer:

• Discounted prices
• Low or no mortgage payment for 1 year or so
• Incentives to the agents and buyers.

So, here is the lesson, if the home does not get any offers, it is price. Right now there are 24656 homes for sale in greater Orlando, not counting the thousands of builder homes. There were only 2196 homes sold in the past 30 days. This is less then 10%. Out of that 300 were condos; this leaves us with only 1900 single-family homes. Selling right now is all about incentives, marketing and a good commission for the buyer agent and a great price.

Here is what we are experiencing right now.

• Buyers are very hesitant and do not want to make up their mind
• Counter offer and the buyers walk
• Low price offer from end user buyers
• Investors making low, low offers to test the market
• Buyers backing out of contracts half way thru the deal.

Watch as the next thing to come, “Homes will not appraise at contract price” because homes are being sold below your asking price which causes your value to drop in the eyes of the appraiser.

There is nothing you can do other then look at the below rules.

Here are some very simple rules.

• Not at least 10 showings in 30 days, your home price is being rejected.
• 10 showings in 30 days but no contract, your home is rejected on price.
• No showings at all your home price is being rejected by buyers and agents.

So how do you sell a home in 30 days?

Price your home below anyone in the area and get maximum amount of buyers in your home right from the start. We do the rest. Here is what proper pricing will do for people who must sell.

Dear Ernst-

I think I was still in shock from the events in my personal life when I decided to list my condo. Any other real estate person could have taken advantage of my situation and sold my home without my best interests in mind. I want you to know that I appreciate your honesty, professionalism and your patience with my numerous questions and phone calls. However, you sent me into shock again with the speed of the sale-listed on Tuesday and sold on Thursday! I have sold quite a few homes in my life but never this quick or for cash! When it comes time for me or any of my friends to purchase or sell another home, rest assured that you will be the first person we call! Again, I can’t thank you enough-it’s rare to find honest people these days and when I find someone like you-I thank God for putting them in my life. I wish you and your family a prosperous and joyful future!

Nancy Mathias 10/13/07

It is our foremost goal to get your home sold, and get you on your way so you can move on to your next endeavor. We need to get you moving fast so your equity will not continue to erode as the market continues to take a down turn. And a downturn it has taken and it will continue on this path for the next 24 month. For some of you it is hard to believe and even harder to accept this market can take such a swing, but we are on the front line of this every single day, we see what is going on and after 18 years in business we have a strong sense of what is going on. Much like the force of a tsunami or a hurricane, one is powerless and needs to get out of the way or hunker down. The same applies to market forces, you either need to hunker down or play the market. If I were to tell you gold will drop in price next week and I was an expert in the field you would sell your gold stock right now at a good price or wait it out, because as long as you do not sell you have nothing lost. It is my belief, the slide in home prices is going to continue and it is imperative to get your home priced below the market to get it sold before the prices erode even further.

Right now, and for the next 2 years, it will not be a good time to sell, but it is a good time to buy.

Here is what I have been seeing in the real estate news article this week alone.

• Fitch says recession would stretch housing downturn into 2008

• Countrywide mortgage production drops 22%

• Inflation jitters jack up mortgage rates

My suggestion is, if you do not have to sell right now, don’t. If you do, do it fast with a great price so you take a jump before the market does it for you.

Thank you and have a great weekend.

Gitta

Discussion Forum

Topic	Posts	Last Poster
Transaction management	1	furman89grad
Life Outside of Real Estate	15	AgentGlobal
Agents Needed - Register Today!	1	mycondospot
Ethical values in real estate business	6	jespiritu
Referrals to Reno, Nevada	1	RenoRealtorPat
NEED AGENTS / & REFERRALS	49	sharonross
Is Social Media Marketing Effective in Real Estate Industry?	4	rhukill
MLS exposure without paying the commissions!!	9	TeamRemaxVision
PMI	1	amerca7163
Ethics	3	mrbrian

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