It May Pay To Be Patient

(If you are thinking of buying or selling a property, there are many things you must consider.)

What type of market is it? Are interest rates rising or declining? How fast are prices appreciating? Now the problem with these questions is that there answers may differ depending on neighborhood or even street and they may not be as vital as other questions as the market changes.

When making a major decision like buying a home, you have to gain as much knowledge as possible and be decisive. Just going with the flow of what everyone else is doing may not be best for your individual situation.

The article, “Right Price for the Market? Listen to Your Agent” written by Al Heavens on November 2, 2006 in Realty Times, explains how your agent may have the necessary knowledge but you are the ultimate decision maker.

The article begins with Heavens asking a seasoned real estate agent that has weathered the 1980s and 1990s storms, to find a home owner who sold their house within a couple of weeks of being listed and for around the original asking price.

“‘I looked through all my listings for the last year, and I couldn't find a single one that wasn't reduced at least once before it sold,’ he said apologetically.”

Heavens said that even though this agent has dealt with much worse markets in the past compared to this one with a strong job market and good overall economy, the agent sounded depressed about the situation over the phone.

But Heavens also knows of a more positive story.

“After commuting more than 100 miles roundtrip to work every day, Rick finally talked Amy into selling the house they'd bought for $319,000 three years ago and moving closer to his business.”

They listed their house for $379,000, which was lower than other comparable homes in the neighborhood. Within two weeks on the market, Rick and Amy had 12 visitors with two serious offers, the last one offering $369,000.

But Rick and Amy were not in a rush, so they were going to wait a little longer before selling.

Heavens then walked by the house a short time after and noticed the “for sale” sign was missing. Heavens saw Rick later that day and asked him what happened. Rick replied that he relocated his job to now be within nine miles of the house so he took it off the market. Heavens appreciated his calming reasoning.

Since Rick received the two serious offers in two weeks with little work being done to the house, he received confidence that is needed to succeed in the market world.

“‘We're going to put an addition on the house as soon as possible,’ he said. ‘I have no doubt that we'll be able to get our money back and more whenever we do sell.’”

The couple who previously owned the home did not have as refreshing of a story.

“A banker picked the place up in 2001 for $136,000, and sold it to a couple of flippers who were hoping to make a killing. They paid $250,000 for what was basically the same virtually roofless, moldy shell. They didn't know how to work with the borough to plan the renovation, and were shot down when they tried to bump up the attic space to a full second story.”

After expanding the attic, they ended up with a renovated half-story and a $200,000 house, based solely on quality.

“In the spring of 2003, when you could sell a tent in a back yard for $350,000, they asked $395,000 for their creation. And it sat for three months. Price readjustments? Four, right down to $325,000.”

At this time, Rick and Amy stepped in and purchased the house for $319,000, which the “flippers” were more than happy to take since they were upside down on payments.

Sales and prices throughout the country are down. So now may be a good time to sell before listening to your agent and risk enduring a painful experience.

Back to Articles