What does 2009 mean for Real Estate...?

For 2009 Sellers…it means it is time for a reality check.

This New Year is a time to look in the mirror and ask yourself, “Am I really a 2009 Seller”? Today’s reality is that inventory is building at an alarming rate and property values have dramatically changed, following the trends of the financial portfolios and stock prices. The 2009 Seller has to let go of the gravy train of the past six years and get realistic with pricing. A 2009 Seller must realize the futility of stubbornly following the dreams of profits on paper, an attitude akin to what has lead to the woes of today’s financial market meltdown. Is the 2009 Seller well served by throwing out an unreasonable price just in case that “one person comes along”? As a 2009 Seller, what do you really think a 2009 Buyer will think about a headline on an ad that reads:

Was $5 million, then $4.9 million, then 4.6 million, then 4.2 million, then 3.9 million, now 3 million. Motivated Seller!!!

As opposed to “A solid value at $2.8 million”

The 2009 Seller realizes that taking a profit is how to gain wealth, even though it may not be as much profit as you thought, moving on to the next deal as a 2009 Buyer will position you for more real estate profits in the future. The 2009 Seller must recognize that coming to terms with breaking even or even taking a loss might be in your best interest unless you are prepared to hold on to your property for a long time.

The 2009 Seller will make a deal if they look at the expanding inventory of unsold property and make an honest decision as to where their property stands vs. properties recently sold and listing prices for comparable properties. Positioning your property at a price that is better that the comparables will get you the showings and put you in the best position to make a deal. A successful sale will lead to another deal and the market will start to move. The 2009 Seller will then be in a position for future profits as a 2009 Buyer, leading the market. The other Sellers will continue to spin their wheels, following the market.

Are you a 2009 Seller?

- Tom Kilby, Associate Broker