Turnabout is Fair Play?

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If you think selling a home in today’s market is very frustrating, think about what a buyer had to do during last year’s market.

Orlando Weekly Market Update

Our team represents buyers and sellers and I have a lot of empathy for both sides, because whenever you deal with extreme situations it is not good for the persons in the middle, like the real estate agent. We seem to take the brunt of it all because we hear the frustration of the sellers this year and we dealt with the utter frustration of the buyers last year. Unfortunately we have no choice of how the market goes however we try to service our clients the best we can, whatever the market throws at us. Let me share with you what buyer’s were faced with last year trying to buy a home, and while this will not move your home any faster, it may help you to understand why your home is not selling as fast this year. Maybe buyers are recovering from last year buyer shock.

• There were hardly any homes to look at for buyers to buy.
• Buyers had to sometimes make 6 or more offers to get one accepted and buy homes they really did not want to buy, and terms they did not want to accept.
• The market was 100% slanted towards to seller.
• Sellers would escalate prices towards the unreasonable. No home could possibly double in value in 2 years.
• Buyers had to go into a lottery to buy a new home or a lot from builder.
• Builders would go so far as to not to even give the buyer a price on a home which had to be build because in the 12 month it took to build the home the price might be 30 to 40% more.
• Buyer had to be ready at in instance to look at a home, which come on the market and write an offer without even thinking about it, because it would have been gone.
• When a home came on the market, there were 10 other offers coming in at the same time and they had to bid against each other.
• Buyer needed to not only offer a full price, buy needed to offer above the asking price.
• Offers got rejected because the buyer needed to close at a certain time and the seller did not want to close.
• Buyer got rejected because their escrow deposit was not as high as the offer buyer.
• After the buyer offered above the asking price, you still got rejected because someone out bid you.
• Then we wrote contracts with escalation clauses, which read. We offer $500 above highest asking price but not more then $10,000 above list price.
• We wrote offers without financing contingency and without appraisel contingency, which put your escrow deposit at risk.
• We wrote offers “As IS” no inspection contingency, buy the home at high risk.
• We wrote offers with buyer never looking at the home because they needed a home.
• We closed contracts where the buyer had to bring in sometimes thousands of dollars in excess over the asking price because the home did not appraise and the seller would not reduce the price of the home despite the fact of not appraising at the sale price.

Having experienced booth sides of the cycle, the ups and the downs let me just say both sides is an eye-opening experience and equally as frustrating and at time humbling.

Looking at the MLS inventory today, not much has changed, in the 4 counties we are analyzing each week. The data we are providing yu with is taken from the MLS data and it is not manipulated in any way and it truthfully represents the actual data. As of today the we have 24468 homes available for sale, there are 3571 pending for sale, which is a slight decrease of 200 homes over the 11/20/06 date and there were 2156 homes sold over the past 30 days. This represents 854 less homes sold compared to last year. The more detailed market analysis is as follows.

The condo situation all over Orlando is not pretty, with a major bankruptcy being reported by a large converter: MAIN STREET USA, INC.

Looking at theses numbers, it is not a time for sellers who are not committed to sell because unless you are ready to use a pricing formula as suggested by one of the agents in the Orlando Sentinel today, your home will not sell. It is also my opinion, backed up by many other reports, we will continue to see a decline in prices and a sluggish market for the next 2 years. We are on a 5-year cycle, say the experts, but look where the money is right now, it is in the stock market. The past 5 years the stock market was marginal and the money was in the housing sectors. So, you tell me when the stock market is going to turn and I can tell you when the hosing market is seeing the boost again. Now, Florida is somewhat an anomaly, as long as hurricanes stay away we have boomers coming down to the sunshine state and may turn the market back on fire. Let’s not forget the research center going into the Lake Nona area is going to ad some more excitement in the future as well.

Have a great weekend!

Gitta

Discussion Forum

Topic	Posts	Last Poster
NEED AGENTS / & REFERRALS	31	BringingYouHome
Real Estate or Marriage?	10	Tears
"Ethics"	4	robertjgaffney
Need Agents	1	grits4me
INEXPENSIVE ADVERTISING WITH RESULTS	1	Tears
Can anyone explain me about foreclosure real estate investing????	8	CentralTexasBroker
Commercial Property Scouts	5	randrews45
Investments	1	jeannaf
Now I have a web site how do I get google etc to recognise it?	8	yxvayns
Life Outside of Real Estate	2	vegasnforeclosurecom

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