Pam Ghanaati

I have had two situations recently where a "magic number" of price was not met so the sellers wouldn't sell. And in both instances, the offers submitted were not that far off the "magic number" original price. In fact, they were both right around 95% of the original price...and in this "slow" market!! What are these sellers thinking?

OK, one was a For Sale By Owner, so he had no Realtor offering professional advice or market analysis. In this FSBO situation, the owner puts a sign in his yard and is asking $107,000 for his house. An investor looks at the house and offers him $102,000 cash. The seller says no. He wants the "magic" $107,000 or no deal. The investor keeps his phone number and calls him from time to time because he sees the for sale sign still in the yard. The seller continues to say no. After over six months, the seller lists with a Realtor and is asking $108,000 now. I don't know what the commission is on that listing, but I'm sure it's more than $1,000. So in the end, the seller will not net as much as if he had come off his "magic number" and sold to the investor for $102,000 cash.

In the second situation, potential buyers liked the property and made a low offer, trying to get the best deal they could. The seller countered this offer coming off the price only a few thousand dollars. Then the buyers made another counteroffer quite a bit higher than their original offer. The seller said they would not go any lower than $135,000. Original list price was $139,900. The buyers offered $133,000, only $2,000 less than the seller's last amount. The seller would not budge. Negotiations broke down over a 1% difference!

I guess these sellers were not truly interested in selling their properties. They had offers on the table that were 95% of the original listing prices and still could not come to an agreement. I was involved in one of the offers and reminded the seller of the current market conditions as evidenced on the market analysis I had completed. I also reminded the seller that we were about to enter the winter season, which is typically slower in any market. But to no avail. Anyway, the point of this post is to make sure that sellers see the overall net amount of each offer and not hold onto any "magic number" that they think they need to have for a Sales Price.

If a picture is worth a thousand words, then 10 would be worth 10,000 words. And I think 10,000 words describing your house could lead to a sale much more quickly than only one picture, or worse yet, no pictures. When searching listings for my buyers, I am continually annoyed and disappointed by Realtors that do not include the maximum number of pictures. And it is totally appalling the Realtors that do not include any pictures at all. These are not new, inexperienced Realtors either. I'm seeing this lack of service from experienced Realtors. So if you're a seller, ask to see the listing that your Realtor has put in the Multiple Listing Service for you. This MLS is how other Realtors find your property for their buyers. If your property has no pictures or just one of the front of the house, how appealing is that? There are just too many houses on the market right now to waste time on one that has no pictures. Why are there no pictures? Is it totally ugly and in disrepair inside? Is it just a little messy and possibly workable? Who knows? Buyers are not going to take the time to look at questionable properties. And that's what a property is with no pictures...one big question mark. Sellers, please discuss this with your Realtor. Make sure they have the maximum number of photos allowed by their MLS. Even with difficult properties, you can find something to photograph. What good is it to have print ads or internet advertising when it is all words and no pictures? Your house needs to become a buyer's next home, and nothing helps them picture that better than pictures. (pun intended)

Even here in Norman, Oklahoma with a pretty stable real estate market, we are seeing properties linger on the market. And after a house sits for several months, informed sellers will make a price reduction. And in the unfortunate event of a pending foreclosure or short sale, sellers will sell at just about any price they can get. Now for the silver lining: homebuyers can get a really good price on a really good home, especially if they can look past the little stuff. Some of the houses are vacant, some have had not-so-good renters in them, and some have not been taken care of very well. In tough economic times, people have to pay for food, gas to get to work, and rent or mortgage payments. They end up having little or no money to take care of necessary repairs and upkeep. Many buyers want a move-in ready home or are unable to see past the cosmetic blemishes. They miss the bargains out there. But if you have the patience and know-how, you can take one of these houses and fix it up for sell or for your own dream home. You'll need to consider the costs associated with getting the property back in livable and beautiful condition. Your Realtor can give you valuable market information so you make a well-informed decision on what to offer taking any repair and renovation costs into consideration.

Whenever I show clients homes and they really like one but hesitate to write the contract, I hear these words in my head, "This one could be gone tomorrow." I always inform the buyers of this fact but without these exact words. It just sounds too much like a sales pitch. "Hurry before it's gone!" "Last one" But the reality is that every home for sale could get a contract at any time. It could be on the market for 10 days or 100 days or 200 days. It could be overpriced, underpriced; in great condition or a real fixer-upper. When the right person sees it and sees the potential either for investment purposes or to make it their new dream home, they will write a contract. And the sellers could take any offer they deem appropriate...maybe even something lower than the sales price, or higher. So I offer the following guidelines to help buyers in their home search:

1. Talk to your lender and know what price you can afford to pay. Also, know the costs
involved in buying a home: Earnest Money, Down Payment, Closing Costs, Prepaid Items,
Inspections, Repairs, Moving Expenses, Utilities, etc.

2. Have an idea of what you're looking for in your new home. How many bedrooms? Baths?
One story or two? Townhome? Condo? Big yard? Small yard? What area of town do
want? Move-in ready or fixer-upper? And how much work are you prepared to do?
Formal Dining Room? How many Living Areas? In town or in the country? Acreage?
Think about these options and make a list. You may change or revise some things
but this gives you a good idea of what you want before you start looking.

3. Discuss your loan limit and your dream home list with your Realtor. She/he is a
professional and can help you find just what you're looking for in your price range. And
if you're shopping in the champagne aisle with a beer budget, your Realtor will let you know.
It is our job not only to assist you in the shopping and buying process but also to educate
you on the local market.

4. Have fun! Once you've done your homework and consulted with your Realtor, it is so fun
and exciting to search for your new dream home.

Even before beginning your search, you can always consult a Realtor for more information regarding your home search and any special circumstances. She can offer estimates of costs associated with buying a home. She'll ask questions and can help you pin down what it is you want in your new home. And she'll educate you on the local market.

So don't delay, consult a Realtor today!

I was touring homes with a couple from out of town last week. As we drove around Norman, OK, they asked if sellers had stopped putting their homes on the market since summer was almost over. I responded that while summer is generally a very busy time in real estate, there are always buyers and sellers looking to buy and sell. Many times life circumstances dictate when you move. Sometimes a job requires a transfer to a new location, or a couple gets married and wants a place to call home. Unfortunately, divorce is another reason to move. Other times families move because they need more room for a new baby. Then there are "empty nesters" that downsize to smaller homes so they have more free time and money to travel or pursue other interests. So while many people move during the summer, usually to minimize stress on school-aged children, people buy and sell throughout the year.