The End of 2010 Shed Some Bright Light on the Market

The market still in flux, especially due to the effects of the end of the stimulus packages, the increase in distressed sales, and the resistance of buyers to act even though prices and interest rates have never been lower! These 2 slides get to the heart of the matter when I am consulting with both buyers and sellers...

We call this the Gameboard Slide - the goal is to get to the Green ($) Square, since that is where you, as a seller, want to be in the shortest amount of time, for the most amount of money that the market will allow. With 91% of properties in 4Q10 needing a price reduction, you can see what happens if you miss the mark (the right price) right off the bat. As home owners, we all feel that our house is the best on the block - you neighbor may be on the market for X, so you feel you should be on the market for $X +$1, right? The truth is, if your neighbor is on the market for $X, they more than likely haven't gotten it right because they haven't reached the Green square since they are STILL ON THE MARKET, so why do you want to be on the market for $X+$1? Take emotion and ego out of the equation and you are left with logic...

This is the American Idol slide - the red lines represent all those homes (folks) that feel they can sing, even if it's only in the shower; they think they are the best on the block. The blue equals the ones that are going to the finals because they can REALLY sing; they won the price war and the beauty contest, and made it to the Green Square. The Green Line represents a stable market - you can see how far we are from having a neutral market in terms of inventory. There are only a few buyers (blue) out there for a ton of houses (red), so it is important for sellers to price themselves right the first time to avoid that price reduction that has hit 91% of the houses listed. How do you as a seller get to the Green $quare - contact me for a free consultation!