Realtors, Prove It To Your Sellers
My Realtor partners are always complaining about their home sellers. They state that the sellers have unrealistic perceptions of their homes value and will not budge on price ( we all do ). I ask them what they as Realtors are doing to back up their ascertions and I get a lot of anecdotes. Most Realtors, I'm sorry to say, aren't ready to handle the complexities of this new market. They still think a slap on the back and a friendly smile is the way to get a good listing. They may get the listing but it will stay on the market far too long.
I recommend all real estate agents the use of the Case-Schiller reports that are posted free online. This is one of the most powerful tools an agent can use to help get price reductions. I bet if you ask 100 agents, maybe 1 has looked at the report or understands how it can be used during listing presentations.
Until price reductions start taking hold more quickly and inventories start coming down, the market will continue to be a wreck. As an industry we have to approach the recovery with a multi pronged approach if we are going to turn this complicated market around.
1) Lenders need to start accepting shortsales much more quickly and start closing foreclosure sales transactions NOW. Stop acting like fools and start processing these transactions faster, much faster. Get inventory off the market now even at deep discounts.
2) Realtors need to stop misleading their sellers about how much they will be able to get for their home. Stop flooding our market with overpriced homes and stop buying the listings with false promises.
3) HUD, Fannie and Freddie need to start pouring low interest loans into the market. Low interest yes. High debt ratios, poor credit and no income documentation NONONONONONONONO.
4) Builders need to dramtically reduce production and stop acting like the recovery will happen next summer. Inventory levels are too high to continue building homes.
5) Banks, Credit card companies and auto loan companies need to stop lending like madmen.
6) The most important item: Consumers need to stop acting like sheep when it comes to credit.
Read Case Schiller here: http://www2.standardandpoors.com/spf/pdf/index/CSHomePrice_Release_112555.pdfMetropolitan Area Level Change (%) Change (%) 1-Year Change (%)
Atlanta 122.72 -1.3% -0.3% -9.5%
Boston 160.98 -1.1% 0.1% -5.7%
Charlotte 130.40 -1.3% -0.8% -3.5%
Chicago 147.84 -1.1% -0.1% -10.1%
Cleveland 109.87 -0.6% 1.1% -6.4%
Dallas 121.96 -0.8% -0.2% -2.7%
Denver 130.96 -1.3% 0.0% -5.4%
Detroit 90.17 -2.5% -0.8% -18.6%
Las Vegas 146.58 -2.6% -2.4% -31.3%
Los Angeles 184.54 -2.5% -1.8% -27.6%
Miami 178.72 -2.6% -1.8% -28.4%
Minneapolis 140.51 -1.0% -1.0% -14.4%
New York 191.32 -1.0% -0.2% -7.3%
Phoenix 139.79 -3.5% -2.9% -31.9%
Portland 169.67 -1.3% -1.3% -8.6%
San Diego 164.12 -2.4% -2.3% -26.3%
San Francisco 145.53 -3.9% -3.5% -29.5%
Seattle 172.84 -1.4% -0.7% -9.8%
Tampa 171.24 -1.8% -0.4% -18.5%
Washington 189.90 -2.2% -0.7% -17.2%
Composite-10 173.25 -1.9% -1.1% -18.6%
Composite-20 161.56 -1.8% -1.0% -17.4%
Source: Standard & Poor's and Fiserv
Data through September 2008
Amen. The information is out there, some can't even find the send button on their keyboard. Are we in a banana republic?
Amen to that! I am especially frustrated to see lenders sit on vacant foreclosed properties that deteriorate while they wait for - what is it exactly they're waiting for anyway? Mold, varmin, water damage?.....