OK, tough times call for tough measures. I've always believed that having the best information gives me what I need to make the best decision. It's the old "Hobson's Choice," where two choices are available, neither of which is very palatable. However, if your new job is waiting in Atlanta - and you've simply got to sell your home in the current Palm Coast / Flagler Beach market - then you might want to read this letter. I'm mailing it to my seller customers this week:
Hello, “Mr. & Mrs. Seller”
Well, I wish this could be a message addressing the “upswing in the market and rising prices and increased sales,” etc. Yet, as you know, it’s not like that at all. As sellers, you read the papers and watch the news… and you are fully aware that this is the most severe real estate market “correction” we have experienced since WWII.
Prices are way down… and still falling. Foreclosures are way up… and still rising. Mortgage lenders and title companies are closing their doors. Builders are hurting and real estate agents are letting their licenses expire. It’s a true “buyer’s market” and it’s no fun to be a seller.
During the first 8.5 months of 2005, our Association of Realtors here in Flagler closed nearly 6,000 transactions (all types: homes, condos, land, commercial, etc.) During the same time frame this year, we closed 1,700 transactions. That’s a raw statistic which says our market is off about 70% from 2005! You know me… and I am an upbeat fellow. I’m not about “gloom and doom” and I know about “making lemonade when I get lemons.” However, I am not going to bury my head in the sand and pretend that everything is rosy.
As a seller… if you are really serious about getting this done, you must look at these factors and lower your price. It’s not about hiring another “better agent” or another ad or a superficial incentive… It’s about price. If you are “moving up” to a more expensive home, you’ll get to be a buyer next! If you’ve just got to sell, for whatever reason, it’s time to significantly lower your expectations. Please don’t get mad at me. I’m the “good guy” and really want the best for you, under these difficult circumstances. Based upon what I see and read and hear, we haven’t hit bottom yet. Maybe it’s time to make a bold move and get it done?
Frank Zedar & Maritssa Vazquez
RE/MAX Oceanside // 386-931-1987
www.frankzedar.remax-florida.com
www.RealEstateForHeroes.com
2 comments:
Frank,
It's about time!
I have known this truth for some time now. It's refreshing to find someone in the profession admit it publicly. Congratulations!
I had an old client (buyer) of mine call me a few months ago (May/June) for some advice. I summarized everything in two comments:
#1
"A lowball offer today might be a very high offer in three months."
#2
"You want to lead the market. When it's going down, get down there before everyone else. You'll stand out in the crowd."
What happened?
She eventually (3 weeks later) advised her realtor to dramatically reduce her asking price. She closed succesfully in August because her price was about $20K off the then-current flock of similar homes. She has beaten the downward spiral. She had the vision (and this friend!) to know what it meant to be special. Fortunately, she could afford to make this decision. Greed did not win out in her case.
Those other similar homes?
They're down to her price right now ... and just sitting there together like way too many apples in the orchard. Based on recent sales in my old neighborhood, there appears to be enough inventory today to last almost four years!
Anyway ...
Thanks for going public with the most sensible, fair, and realistic advice you could have given. I hope someone out there gets it.
XOX,
Peter
Peter- It's all over Florida, even in your former "high end" locale over in Naples. Most of "both coasts" are in free-fall. There are some exceptions (ie: Raliegh & Charlotte, NC), but most places are hurting. Where are the buyers in this buyer's market???
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