Thursday July 23, 2009
Kids are a blast! Just recently a sales person of mine came into the office with his tag-along toddler in tow. I spent some time reminiscing about my kids when they were the same age and some of the silly, crazy things they would do. My favorite stories and antidotes bubbled up with excitement as we laughed together comparing similarities in kids and their behavior.
Like kids, real estate can be rewarding and challenging in any stage of any market. Reminiscing about the good ‘ole days of real estate can be like double edged sword. A double edged sword which never stops swinging…much like a pendulum. I remember the sharp side of the sword well as it sliced in an upward motion as I was purchasing my home. Purchasing a home is easy. The challenge was I had just relocated from Minneapolis and I was ready to buy as the values were just starting to appreciate with explosive speed. We had visited many homes without any luck and finally found one that would be a possibility. The home had been on the market 14 hours when I had the chance to see it. We barely had a chance to walk the home and had to make an instant decision. I say instant because three other families were lined up to view the home. We placed an above asking price offer on the home while the other families were touring. We did get the home, but it did hurt. As a buyer, the pressure to act was great.
Times have changed from 2003. We are now seeing the other side of the sword. We are now in the downward pendulum stroke, and it is just as sharp for the seller. In 2003-2006 a seller had only to show up and pick up the check. Scare tactic and the fear of loss were easy closing strategies.
As the down stroke of the double edged sword began, buyers began to react. The reaction first started out with a bit of apprehension. Buyers were not as willing to purchase with lightning speed. The fear tactic sales close was still effective, but loosing ground. The down stroke is now in full swing and the seller feels the cutting blade. The seller was not the only one in denial. The person appointed by the seller to help broker a sales transaction on the home has also been in denial. With a wide selection of inventory at all time highs, the days of hard selling and motivation by the fear of loss are long gone…except for the seller.
No seller in their right mind wants to miss an opportunity with a qualified buyer. The opportunity is there for the brave at heart, for the adventurous, for the opportunist, for the entrepreneur, for the taking. These are the days in real estate where like an attorney in the court of law, a seller must prove, beyond reasonable doubt, the embedded value of the home for sale.
The greatest news for the seller is the resurgence of sales. I’m seeing better qualified buyers, and the media is reporting better than expected sales to the tune of an 11% increase in new home sales. The buyers who are out, are seizing the opportunity with both hands and embracing the savings. History will definitely tell us when the pendulum of the buyer’s market hit it’s apex and began the down swing, but I’m beginning to feel the change. The perspective from within the ring appears to show:
- Market fear beginning to level off
- The buyer’s market slowly taking the initial steps into history.
I embrace the change coming and any opportunist seeking to buy a new home, maybe even a custom built Boone Home?