Northwest Living | Bellingham Real Estate Market

 The words that are used to market your home matter in a big way.  Who ever said, “Choose your words wisely”, wasn’t just saying it because it sounded good.  After all, wars have been fought over the wrong choice of words.  Even civilizations have collapsed because of them.  And it appears that your success with which your home sells may be determined by the use of the right words.

One recent study of sales patterns showed that homes marketed with the words “motivated” actually took 15% longer to sell, while homes listed as “handyman specials” sold in half the time. The same study, where 20,000 words were looked at in home listings from 1997 to 2000, found that the buyers put style over substance.  Words like “curb appeal” or general attractiveness helped sell a home faster than words about value and price.

Homes described as “beautiful” moved 15% faster and for 5% more in price than the benchmark. “Good-value” homes sold for 5% less than average.

Here’s one I won’t be using anytime soon, the plea of “must see”.   That got about as much play as a telemarketer at dinner time. Homes with listings using the words “must see” had a no impact at all on the number of days they took to sell.

Listings where the word “landscaping” was heralded sold 20% faster, and homes in “move-in condition” took 12% less time to sell than the benchmark, although the study showed “move-in condition” had an insignificant impact on the sales price.

Owners use listing language to convey how serious they are about selling. The study found that listings in which the seller said he or she was “moving” sold for 1% less in price compared to 8% less when the seller was “motivated.”

Descriptions of houses that indicated an obvious problem — such as “foreclosure,” “as-is” and “handyman special” — drew substantially lower sales prices. Words that suggested more desirable attributes of the house — “granite,” “maple,” “gourmet” — translated into a higher sale price, the study found.

One interesting problem discovered was that “superficially positive” words that, in effect, damn with faint praise — such as “clean” or “quiet” — had zero or even a negative correlation with prices.

In another study researchers found, among other things, that buyers read between the lines. If you can’t find anything better to say than “new paint,” perhaps it’s best to say nothing at all.  But with that said “new paint” appeared on 15% of the listings and was the most commonly listed comment.

Positive and factually verifiable comments such as “golf” or “lake” drew increased sales prices; other presumably positive comments regarding new paint or new carpet brought lower ones.  Sellers should focus on words that are extravagant; otherwise buyers perceive that it’s not worth talking about.

The biggest word sellers today need to avoid is the word ‘motivated’.   Homes with ‘motivated sellers’ stayed on the market 15% longer than average and sold for 4% less.  It’s perceived that the sellers overpriced the house to start with and eventually had to lower it.  This explains the length of time on the market and lower sales price.  Via latimes.com
 

Here’s a few of the article’s I read this week that I’m adding here for my viewers.  Each and every week when I’m posting to the blog, I read and review a lot of news articles and blogs.  It’s imperative that one studies this market constantly to be a well informed source when on the subjects I write about.  So here is my list of articles for the week of Dec. 16 to Dec 22, 2006.

$14.5M slated for Bellingham Bay in States budget - Via Bellingham Herald - Dec 20, 2006.  The Port of Bellingham requested money from the state’s Model Toxics Control Act budget to help with cleaning up mercury in Whatcom Waterway. The Model Toxics Control Act is a voter-approved initiative adopted in 1989 to identify, investigate and clean up contaminated sites in Washington.  This is great news for Bellingham Bay and the cleanup efforts in the Whatcom Waterway in preparation for the New Whatcom project going forward.  This whole area in downtown Bellingham presents an exciting time for Bellingham residents and visitors to our great city.

Best and Worst Housing Markets in the U.S. - Via Real Estate Journal - Dec 20, 2006.    Tacoma area rated 3rd best market to outperform the rest of the western states and Seattle-Bellevue area were rated 4th. Portland, Oregon was rated the 5th best on the list.  There were a lot of cities in California that ranked pretty low, because they were overvalued in the survey.

Bellingham Boat Builder thrives in an ‘incredibly dynamic market’ - Via HeraldNet.com - Dec 18, 2006.  In the past four years, All American Marine has grown annually at a 30 percent clip. Matt Mullett CEO, says these days their in the enviable position of choosing what projects the company should go after. His only limitation is having enough qualified workers to do the job. 

Whidbey Island Takes Storm’s Biggest Punch - Via HeraldNet.com - Dec 16, 2006.   All of Whidbey Island lost power last Thursday night when Puget Sound Energy’s main transmission line to the island was taken out by falling trees.  Winds exceeded 90 mph on many parts of the island.  My father in-law Jack Hill, who lives on the western side of Whidbey Island and had spent 20 years in the Navy said, “It’s the worst storm that he’d seen since he got out of the navy 25 years ago”.

VANOC on track and on budget heading into 2007 - Via Vancouver 2010 - Dec 19, 2006.  VANOC and its partners are planning a number of exciting milestone events in February and March 2007 to celebrate the three-year countdown to the 2010 Olympic and Paralympic Winter Games. Details will be announced early in 2007.

Boston Ready to go Green - Via The Boston Globe - Dec 20, 2006.    Boston is expected to become the first major city in the nation to require private developers to adhere to a strict set of so-called green-building standards, officials said yesterday.  The goal is to make new buildings more energy efficient and environmentally friendly, by promoting, for example, use of efficient heating and cooling systems, recycled building materials, and careful separation and disposal of waste.

There is an added cost for doing so, but I think the long term benefits of building with green standards will far out weigh the upfront cost of construction.  Infact I think the Bellingham area already has had some of the best examples of builders that have gone green already, especially Rick Dubrow of A-1 Builders in Bellingham, WA.  If Whatcom county ever took on the standards for building Green, Rick Dubrow should definetly be one of the advisors, if not running the committee.  A-1 Builders has literally been building Green for at least 10-15 years.  Good job Rick Dubrow!

Jerry Campbell - Muljat Group - Bellingham WA - Bellingham WA Real Estate

What’s In, What’s Out with Homebuyers in 2007 by Mark Nash is based on a survey of 923 real estate agents, managing brokers and association executives who responded to a survey request in Agent to Agent ezine, published by Mark Nash. Agent to Agent is distributed monthly to real estate professionals in all fifty states and Canada.

Housing Trends in for 2007

• The housing correction. My prediction in the 2006 “What’s In, What’s Out” I forecasted a soft decline in home prices in most markets. In 2007 project a 5-8% decline in prices on average between single-family and condominium homes.
• Homes that are priced right. It isn’t the boom market of 2005, look at only the sold comparable’s from the last six months. Forget the cocktail party chit-chat when all you heard was record prices in the shortest market times in U.S. real estate history.
• Online home valuation sites like Zillow.com. Mainly those that utilize up-to-date and reliable home sale data. Technology is great when it works, but tread carefully with online valuation web sites. Ask yourself how long does it take your recorder of deeds and real estate transactions to record them? If up-to-the-minute, okay, otherwise plan the lead time into the online valuation to spew out accurate information.
• Market timing. Many buyers and sellers were on their own timelines in 2006 and they missed opportunities that were created by not recognizing the real estate markets ebb and flow. Spring is high market, the most demand by the largest number of buyers. Summer is a good market, fall is fair, and winter is the remnant market, the left-over buyers and sellers from the high, good, and fair markets.
• Savvy buyers. With interest rates historically low and bent-up demand from a soft year in 2006, the deals and lack of frenzy won’t last long. “Deferred demand” from 2006 could ignite a mini-frenzy in some markets.
• Third places or officetels. Home offices are on the rise, though those who work from one, need more than a coffee shop or hotel lobby for business meetings. Look for alternative work spaces that bridge the home office with hourly rentals of conference room-type spaces that offer technology and privacy.
• Upscale garages. It’s no longer the out-of-sight-out-of-mind dumping ground. Today’s garage owners want them decked out with cabinet and storage systems, mini-refrigerators, insulation, heating and air conditioning and durable but residential-looking flooring.
• Caving. Man caves and Mom caves are coming out of the closet. Personal dedicated space for one person in a household can go and work on projects or “chill” without being disturbed and if so only in an emergency.
• Two home offices. Rising gas prices and commuting times have created more two-work-at-home families. Size matters, make sure each is at least ten-by-ten feet.
• Rejuvenation rooms. A one-stop space for exercising, meditation, yoga, sauna and fancy steam showers. Showers are going upscale too. Waterfall fixtures, programmable temperature and water flow are the next trend for “showerers”.
• Heated patios, walkways and driveways. Northern baby-boomers are tired of shoveling and are looking for ways to decrease winter maintenance, plus many have discovered how also heating the patio can add an extra couple of weeks enjoyment in spring and fall.
• Snoring rooms. Offered as options in new homes, adjacent, second bedrooms to the master, offer relief from the “buzz saw” and an alternative to the couch. A godsend for millions of relationships nationwide.
• Modular Housing. Many think of the out-dated double wide as the typical modular, but modular options and quality have exploded from the top end 11,000 square foot home, with every whistle and bell, complex finishing details, to the bread and butter 1200 square foot starter home. Low-cost, factory-built construction and quick conception to foundation times, make this the affordable wave of the future.
• Sustainable Design. Sustainable design is based on three areas; energy conservation, indoor air quality, and resource conservation. Viewed as new-age in construction circles, sustainable design looks at homes holistically, and not just a group of unrelated systems thrown together. Natural forms of energy, such as wind, solar, and geo-thermal if available on-site, are maximized.
• Structured wiring. Right up there with all the buzz about green homes is structured wiring, now entering the main stream must-have for technology based home buyers. Coaxial TV cable (RG-6), Category 5E voice and data lines, distributed radio, remote camera security are wired through out a home into multi-outlet boxes called in the trade, home network centers.
• Mixing finishes on kitchen base and wall cabinets. Matchy-matchy is out in kitchen design. The new look is to have stained-wood bases and painted wood upper cabinets. The old-europe-look rules, but with today’s appliances.

Housing Trends Out in 2007

• “As is” in home sale marketing. Anything went in the boom market, but if you’re planning to use “as is” in 2007, forget it. The two letter-two word kiss of death, buyers see it as a red flag about the home and you the seller. You have too much competition to be chasing buyers away.
• Buyer incentives. Free cars don’t sell houses, realistic pricing does. Gimmicks only confuse and distract buyers. Cut to the chase and deduct the cost of your free-with-purchase from your current price and send the signal to buyers that you’re selling real property not personal property.
• Endless Open Houses. The open house pendulum has swung from ” the house sold in the first day” to “we need to have our house open every Sunday”. Desperation is when your home is open every Sunday. Buyers know and track it. Plan on every three weeks to have a public open house.
• Over-full-price offers. It was a strategy in the boom market to under-price a home and let the market set the selling price. Not today, one thing that won’t change in 2007 is that every buyer will want a deal, and walk from one if they don’t get one.
• Bedrooms not large enough for a bed. In the boom, rehabbers and developers learned the fastest way to profit was to increase the room count of a home of an existing home. Bedrooms shrunk to walk-in closet size when a four-room one-bedroom was gut-rehabbed into a four-room two-bedroom. Or, the doorways and windows eliminate required wall space. Savvy agents kept asking, can you fit a queen-size bed in either room? And the answer was usually, no.
• Loads of glass upper kitchen cabinet doors. Buyers say it looks great, but many who specified and experienced it, firsthand don’t have the time to keep their kitchen cabinets organized. Plus if you hate washing the windows, having more glass in a greasy room like a kitchen is high-maintenance.
• Bowl-shaped above-counter bathroom sinks. The splashing and over-all up-keep have earned these the reputation of nice to look at, but don’t want one.
• Any shiny metal finish. Brushed nickels and pewter’s are in and antiqued and polished brass is out.
• Stainless-steel refrigerators and dishwashers are a fading trend. The cold look and higher maintenance of steel is shifting buyers to specify warmer colors in kitchen appliances.
• Spiral staircases. Once the rage for mid-seventies make over’s, now death to a home seller. The boomers have aged, their kids don’t like them, unfriendly to pets and young children. Take yours out and put in a standard staircase (inside or out) before you sell.

Housing Trends on the way out.

• Bamboo floors. The first reviews are in on this popular eco-friendly flooring, and they’re not pretty. Easily dented and scratched, and prone to warping from variations in our climate and humidity levels.
• Hardwood laminate floors. The word is out that these noisy poor relatives of solid hardwood that don’t stand up to multiple sanding’s to change color or to remove stains.
• Home sellers who smoke in their home while it is being marketed. Buyers hate second-hand and stale smoke odors. Marketing your home is not the same as living in it. If you have to smoke go outside.

It’s very interesting to look thru the list that Mr. Nash came up with based on interviewing all those Realtors. Just the fact that he made it through the process of talking to 923 real estate agents is amazing on its own.  I do a lot of new construction sales and just like the fashion world, we have to stay on top of our market to make sure we are putting out the right product for home buyers.

This article is a no-cost run-at-will with permission from the author, Mark Nash.  Mark Nash is a real estate author, broker and syndicated columnist based in Chicago. The author of five books, his latest Real Estate A-Z for Buying & Selling a Home is available in December 2006.  The Library of Congress has invited Mark to Washington, D.C. to present his fourth book 1001 Tips for Buying and Selling a Home on March 21, 2007. He contributes residential real estate analysis to Bloomberg TV, Business Week, CBS The Early Show, CNN, HGTV.com, Smart Money Magazine, The New York Times, The Today Show and USA Today. 

Thanks Mark, this is a perfect article for my Northwest reading audience.  I’m sure I can use some of these great tips in real estate discussions in Bellingham, WA during 2007.
 

  Money Magazine just released its ratings for the smartest cities in America.  Sitting at the top spot this year was our own Seattle, WA for being the smartest city in America based on 52.7 percent of its residents having undergraduate degrees. 

 With more than half of Seattle area residents completing college degrees, it beat out San Francisco, CA with 50.1 percent.  Rounding out the top five were Raleigh, NC at 50.1 percent, Washington DC at 45.3 percent and Austin, TX at 44.1precent. 

 Much of the housing-market slowdown in the Northwest and the country has been attributed to a spiraling of the number of homes for sale, pressuring sellers to lower prices to compete.  It’s basic ecomomics of supply vs demand played out in the local housing market.  The buyers have had a lot to choose from in the past 12 months, but it appears to be changing slightly.

Since then, the number of homes for sale has fallen off of it’s high’s this summer and early fall 2006. Many homeowners this past year put their homes on the market thinking of the earlier big run-up in sales prices from 2003 to Sept. 2005.

In one striking respect, though, the market environment is changing: Instead of the number of homes on the market rising by several hundred per month, the stock of houses for sale has been dropping by as much each month.

In a new forecast by the National Association of Realtors, existing home sales are expected to rise gradually in 2007, with annual totals comparable to 2006, but new home sales are expected to fall.

About three-fourths of the country will experience a sluggish expansion in 2007, while other areas should continue to contract for at least part of the year, says the NAR.

“Most of the correction in home prices is behind us, but general gains in value next year will be modest by historical standards,” he said. “Buyers, especially first-time buyers, with the combined benefits of seller flexibility and an unexpected drop in mortgage interest rates, have a window of opportunity. These conditions will persist in many areas until early spring when inventory supplies are likely to become more balanced.”

Existing-home sales for 2006 are projected to fall 8.6%, to 6.47 million units. Sales are expected to rise steadily next year to a total of 6.4 million, or 1% lower than this year’s total.  via Rismedia

I’ve been predicting this for our own market here in Bellingham WA that as soon as the interest rates started heading down and inventory started going down as well, thats clearly  an opportunity for sellers to get in the market.  If a seller is planning to buy another home, remember that as tough as this market seems as a seller, you’ll also be a buyer on the back side.

It will be interesting to watch the monthly real estate sales for Bellingham and Whatcom County as we get into the first few months of 2007.  By the time we get the Bellingham sales stats and listing stats in for the first couple of months, we should get a clear sign of things to come over the next twelve months.

 The Liberty Park new homes community of 52 brand new homes is now underway in Ferndale, Washington.  Custom Home builder Roosendaal-Honcoop Construction has nine two story homes available to the public, ranging from 1,871 to 2,891 sqft homes.  They also are offering seven one story homes ranging from 1,607 to 2,060 sqft homes.

RH Const. has been building fine homes in Whatcom County since 1979.  They just completed the very successful Myers Estates project in Ferndale WA, consisting of 42 brand new homes. Prior to these two ferndale projects, they also built most of the homes in nearby Bellaire Estates community, home to 62 upscale homes.  They like to say, “we build communities one home at a time”.

They currently have one home already Sold and completed, two more pending and set to close in early January 2007 and have six homes under construction and listed for sale.  They have a complete web site full of information about Liberty Park Lots, Liberty Park Floor Plans, North Bellingham information, builder info, and lots of home photos.

Their 2007 Schedule of open house’s was just anounced at Liberty Park Open House Schedule.  They also recently released their welcome to Liberty Park announcement at Liberty Park News blog site. 

Brought to you by Jerry Campbell, Realtor - The Muljat Group - Bellingham, WA 98225

New Lynden Windmill hit with retailers – via Bellingham Herald – Dec 11, 2006
The 53-foot windmill is under construction at Lynden, Washington’s Fairway Center on Front Street.  The windmill base will be the new home of Woods Coffee, Fairway Drug and Sportsworld.

Cordata building ban could be lifted soon – via Bham Herald – Dec 12, 2006            Trillium Corp. and the city of Bellingham say they’ve found a way to share road costs in north Bellingham’s Cordata area.  The city is now considering lifting the two-month-old construction ban.  Now projects like DR Horton’s Reserve at Cordata new homes community and a local grocery store might be able to finally get back on track.

Mortgage Insurance slated for tax deduction – via Realty Times – Dec 12, 2006
Home buyers who close loans during and after 2007 and make less than $100,000 a year will be eligible to deduct all the private or government mortgage insurance paid for the year.  That’s good news for the real estate business.

Healthier Housing Inventories – via Rismedia.com – Dec 12, 2006
Economic conditions are poised for a return to average inventory levels and home prices that are flat to small rises by June or July.  Were dancing on the bottom when it comes to this housing slow down.  I’m looking forward to a normal year up here in the Bellingham real estate market.

Smart ways to boost a home’s curb appeal - via Boston.com/realestate - Dec 12, 2006  Simple fix ups like painting and clean up results in fast sales of homes that had previously languished unsold for many months. To make a home show its best, home owners should spruce up the landscaping and making cosmetic repairs to eliminate buyer objections. 

The Samish Neighborhood is located in the far south east corner of the city of Bellingham.  The residential part of Samish is mostly hilly with some flatter areas mixed in and most enjoy spectacular views. The Samish area is full of resident evergreen trees as well as maples, alder and many other deciduous species. The area enjoys the third largest lake in Whatcom County with Lake Padden.

The Samish Neighborhood has two distinct areas, Lake Padden, the park and the 18-hole Lake Padden Golf Course.  Lake Padden Park is in the south. The other half of the Samish Neighborhood along Interstate 5 is mostly residential with some newer home communities and older established homes mixed in. The homes are on large lots with a mixture of older and newer homes through-out. There is a small area in the north that is commercial. 

Views of Bellingham Bay, the San Juan Islands and points north can be seen from many advantage points of the Samish Neighborhood, mostly on the steep hill along the West.  There are some views from the very top that are absolutely stunning and of course carry high price tags ranging up beyond $300,000 for the land. In the South of the neighborhood some homeowners enjoy views of Lake Padden and/or nice territorial views above the forested areas looking south towards the Chuckanut Mountains.  One really has the feeling of awe with the natural beauty that surrounds you and the panoramic views of this stunning area we call home.

The Residential part of the Samish Neighborhood boundaries can be described by starting at I-5 and where the western edge of Lake Padden Park meet, from here north along I-5 and the South Neighborhood, the Happy Valley Neighborhood and finally along the Sehome Neighborhood to Consolidation. Then east along Consolidation and Puget Neighborhood and then South along Pacificview community and all the way until you reach Samish way.  The line is just west of Governor Road.

The Samish Neighborhood homes include starter homes, older established residences, brand new homes and even a few million dollar homes with views. The Northern section near Consolidation Ave. is newer homes and nearby is the Ridgemont community of homes built 25-30 years ago.  The homes in the area off of Samish Way are classic older homes with newer custom homes mixed as smaller homes are replaced or infill lots are built on.  Most of the homes above and below Samish way enjoy the views of Bellingham, the islands and Bellingham Bay.

Behind the Ridgemont subdivision off of 40^th St, several new housing communities are under construction off of Wildwood.  Most of these homes are being built by local builder Greenbrier Construction.  Further up 40^th St and to the southeast is the luxurious area called Samish Highlands, where homes range from half million and upwards.  These homes enjoy large lots and panoramic views of the San Juan Islands and Chuckanut Mountain. This land is being offered by the owners of my brokerage at the Muljat Group. To the south of here are the homes in the Parkhurst and Padden hills subdivisions.  These homes were all built in the last 2-5 years. The rest of the area in the south are older established homes.

Samish residents can shop nearby at Sehome Village just west of I-5 and Samish Neighborhood.  The anchor store is a Haggen’s grocery, plus Rite-Aid, REI, various retailers, coffee shops and several restaurants.  North of Sehome Village and along Samish Way are several gas stations, motels, more restaurants, and businesses.   To the south of Sehome Village off of Old Fairhaven Parkway are a couple more gas stations, Food Pavilion grocery and several assisted care facilities in the South Neighborhood.

Just a short distance from the Samish Neighborhood, residents can find them selves enjoying Western Washington University, Fairhaven Historic District and a revived Downtown Bellingham bustling with activity. Samish Way is the main road thru the neighborhood down to the rest of the city of Bellingham. There is also a back way that winds down the hill on the south west corner to Old Fairhaven Parkway and from here to the beautiful South Side and Chuckanut Drive.

Samish residents enjoy a rural setting, close to amenities, stunning views and recreation with all that Lake Padden has to offer.  Many locals walk the 2.6 mile trail that winds thru the forest along the lake for relaxation and runners enjoy it as well.  You can also enjoy fishing, non-motorized boating, swimming beach area, picnics, barbecues, tennis, playgrounds and softball fields in a picturesque setting.

Lake Padden with its public golf course is the largest park in Bellingham.  Lake Padden Golf Course offers 18 holes with evergreen trees that line most of its course.  Golfer’s can also use the driving range to perfect their swing.  Lake Padden really has a lot to offer to the avid outdoors person.

Within a couple miles south of Lake Padden is the second largest lake in Whatcom County with Lake Samish and its Park.  There is a public beach for swimming and boating.  I’ll add an entire post dedicated just for the Lake Samish area living and its awesome recreation down the road.

Samish Neighborhood children attend Happy Valley Elementary School. Middle school students attend Fairhaven Middle School, with exception to some kids in the north east area of Samish Neighborhood attending Kulshan Middle School. High school students attend Squalicum High School.

Every year the editors at Frommer’s Travel Guide and Frommers.com selects the top travel destinations for their readers.  Out of all the places on the globe they select only twelve places to refer to their viewer’s. This year two Northwest towns made Frommer’s list including British Columbia’s Okanagan Valley and Portland, Oregon.

Okanagan Valley, a lush region of British Columbia, dubbed by some as “Napa North” or “the Tuscany of Canada”, boasts a mild climate, with rolling hills and plentiful fruits, nuts and grapes. Vineyards are the big business now — with more than 120 in the region, it is an ideal place for wine tasting. As in Napa, the topography and climate of Okanagan Valley make it a great place for hiking, kayaking, and biking (bike tours will even take you from winery to winery). The gateway to the region is Kelowna and the center of the wine region is a town called Naramata.

Portland, Oregon situated one hour from the Cascade Mountains and one hour from the Pacific coast, serves as a convenient hub for the area’s excellent outdoor adventure opportunities — from summer hiking and mountain biking to winter snowboarding and downhill skiing on Mt. Hood, and kayaking and fishing on the Columbia River. Portland, an environmentally friendly town, has revitalized its waterfront along the Columbia as part of an overall commitment to responsible urban development. Here is one of only three U.S.-based sake manufacturers, where you can tour the facility and participate in a sake tasting. Foodies are starting to recognize Portland for its flourishing restaurant scene, especially in the Pearl River warehouse/loft neighborhood. There is also nearby Willamette Valley, a wine region touted for its up-and-coming Pinot Noirs.

Jerry Campbell - Muljat Group - Bellingham WA - Bellingham WA Homes.

 When pricing your home for sale, sellers need to be careful with the price that’s initially set.  In today’s market especially, sellers really need to be cautious of making an error of overpricing their home.  If you price it to high and the market is moving down, your home will be passed on by.

Too many sellers make the mistake of suggesting to their real estate agent, “Well can’t we just try this higher price for a month or two and then we’ll change the price” or “Lets price it higher and the buyer can just make us an offer.”  Sellers should never try these tactics in any market, but especially if the market is moving down.  Your home will not sell if buyers feel it’s overpriced.

By far, this is the main reason a home doesn’t sell. Although a seller might be just testing the market, prospective home buyers are smarter than this and they know an overpriced listing when they see it. Worse, their buyer’s agents won’t even bother showing homes with asking prices above recent sales prices of comparable nearby homes.

Any buyer that’s been out with their agent looking at homes will soon realize, as well as the buyer’s agent, that your overpriced home is out of place.  Even if they like your home, they won’t make an offer in fear of insulting the seller.  Then when you lower the price, the buyer usually thinks…”there’s that overpriced home again.”  Your far better off starting at the real market price for your home than an inflated price to begin with.

In a market like this with it favoring the buyers, most buyers are very leery about making offers in fear that they might have paid too much.  Buyers are also thinking that the prices might come down even further.   This is why an overpriced home to begin with, in most cases ends up selling for less than what it would have fetched if priced right when it was first listed.

In today’s real estate market, more than half of all home sellers attempt to set their listed price above the market. This type of strategy of over pricing the home will usually backfire on the home seller.

Because of the internet and other technologies, most home buyers now have access to the same real estate information that was once just for us Realtors.  Savvy buyers now have information about recently sold homes in a particular area.  With this information in hand, it’s hard for sellers to fool a weary buyer on the price of a home.  If your home sits on the market too long from being overpriced it can create a negative aspect to the home causing it to sell for much less.  Sellers should never play this game, and especially at this time of the real estate market with sales as low as they’ve been the past 15 months. 

It’s been an interesting run up in prices and Im certain an even tougher one to swallow on the slide backwards for some.  I can’t tell you how many times I told who ever would listen, that there’s no way the prices of real estate would continue to go up as sharp as it was for a couple years there.  Hopefully we can get back to normal times and it looks like thats whats ahead for at least the the next 12-18 months at least.