Now that the Real Estate Market in many areas of Middle Tennessee has made a quick swing from “Glut of available inventory” to “NONE,” I’m seeing some Home Sellers gloating and prancing around on their “High Horses” . . . Of course, they’ve earned it because they’ve been the underdogs for the past several years.
It might behoove some of the more obnoxious pontificators of prowess to reel it in a notch or 2 lest they get bit.
Some seem to have forgotten a few of the basics:
- Just because Buyers have fewer purchase options doesn’t mean that they are all in desperation . . . There ARE other viable options which mean they don’t HAVE to buy YOUR house
- They could rent instead of buy (Short or long term)
- They could buy less house and add on later
- They could buy a fixerupper and fix it up
- They could in their current house and expand
- They might wait til you get more realistic and buy yours below market
- Sellers cannot just pick a price – ANY price . . . There’s gotta some level of justification. Even if you fool a Buyer, the appraisers ain’t playin’ that game.
- Even now . . . If you want top dollar, your house better be updated and in top condition.
- For you builders out there who might be “Taking advantage” of Buyers as some sort of twisted revenge for the bad things that happened to you when the economy tanked . . . Remember:
- It’s a cycle . . . This rosy market isn’t forever, and when it ticks back down, Buyers and REALTORS will remember how you are treating them while times are good.
- It is NOT OK to assume that all REALTOR commissions are negotiation chips . . . You set your commission with your listing brokerage who offered compensation to the Buyer Brokers . . . and you did it with a written contract in the form of a listing agreement.
- Put good quality workmanship and fixtures in your houses at the listed price . . . Buyers are too smart to fall for that “Bait and Switch” of loading a model with upgrades and then selling a stripped down version and upcharging for the good stuff.
- “Non-refundable earnest money” is an oxymoron that (I believe) does not belong in a real estate contract. Buyers will not tolerate the games you play to shift ALL of the risk onto their side of the transaction.
- This market STILL requires the REALTOR to implement a sound marketing program. Real Estate Sales Professionals do not market today the same way they did in prior years because of new technology options . . . and every day present new market conditions . . . Marketing programs must perpetually adapt.
- Most REALTORs “Pre-Market” for WEEKS before listing your house – To other REALTORS and to the general public through social media.
- REALTORS generally incur more expenses BEFORE listing the house in the MLS than before with Professional Photographers, Stagers, and other professional vendors.
- Every listing is an INVESTMENT for the REALTOR who literally bears ALL of the risk . . . If the house doesn’t sell, the REALTOR doesn’t make ANY money
- While your loyalty to your REALTOR for you own home purchase/sale is wonderful, don’t forget they have to feed their families when YOU are not Buying or selling property . . . so don’t forget to REFER your friends, family, and work associates .
- When you ask a REALTOR: “How are things?” and that REALTOR responds: “VERY BUSY”, that doesn’t necessarily mean the REALTOR is actually closing deals. When the market is like this, there are MANY deals that never come together and/or fail to make it to the closing table.
So . . . The MOST important thing to remember is simply this:
Don’t EVER forget that real estate market conditions are cyclic . . . Everything that goes up . . . comes down . . . and visa-versa.
Karma is REAL . . . You’re gonna reap what you sow.
Do unto others . . .
Everyone has other options.
(Just a small dose of humility for some of those big-heads out there)