Are You Suffering from “Not My House” Syndrome?

“Too much time on her hands” “Needs to get a  life” “Nostradamus of Real Estate” “Real Estate Genius”
Ok, the first two are definitely correct. I just like the last two. Anyway, I tried to tell ya’. Home prices are coming down. Still.

The members of The RealCincy Group have spent copious amounts  of time over  the last 2 – 3 years, meeting with sellers, and attempting to explain why the sellers need to price competitively, and skip the “let’s just try” angle if they are serious. We have counseled and consoled, while explaining global economics, stock market volatility, mortgage backed securities, inflated second mortgage appraisals. Wow…we ARE boring. Nevertheless, home sellers are just having a hard time understanding that the price that we suggest will net them a quicker sale, and will save them money in the long run.  

It has taken a banking “thump on the head”, called the “Global Credit Crisis” to get home sellers to understand that the home selling market is tight…..for the neighbors.  Soon to be released this month, is a report from Zillow’s Q3 Real Estate Market Report.  This report states that 49% of home owners believe that their own home’s value has increased, or at least stayed the same, over this last year! Really?? Still?

49% of homeowners have a bad, serious case of “Not My House” Syndrome.

Nationally, over 74% of homes have decreased in value.  Right here in Greater Cincinnati, I just shared with you the other day that there was a $12,162 drop in average sales price in the last 6 months, from this same time last year, with 1378 fewer homes sold.  That information was right out of the Greater Cincinnati Multiple Listing Service.

One couple I met with about 4 months ago had a sad, serious case of “Not My House” Syndrome. Everything about the listing appointment was stellar until the “ So, about what do you think we will sell for?” question was put out there. Ok, I’ve done this before. I have numbers, pretty pictures, stats, and references. I know what I’m doing. But Whew! Did the tone of that meeting drastically change!

Nice, kind people, but they got “the syndrome” bad. They listed, 4 months ago, $50,000 over what I suggested. Nine price drops later (fire sale anyone?),  they just hit a listing price lower than what I had suggested that they would anticipate selling. Ouch. Now, I don’t have a crystal ball, but experience tells me that  if they had just priced closer to that price in the first place, they wouldn’t be offering a buyer agent vacation package, and taking a whipping on the sales price too.

I confess. I do like to be “right”. Ask Randy, poor thing.  It’s part of my first born, type A- personality. But I really do care about people and their investment too. I just hate seeing people taking a beating like this because of poor advice. We are where we are, economically. We can’t change this. But we can minimize the damage.

“Ok. So what’s the point?”  I’m getting there.  In this market, you can not afford to have “Not My House” Syndrome.  It’s time to swallow the cure. Here is the cure: You need to ask questions. Review recent sales. Even sales from one year ago need to be looked at carefully. Objectively look at how the numbers are trending. You are not in the real estate business with access to the daily numbers so you don’t have to be an expert. But your agent does. Go with someone a little “nerd-y” that studies those numbers, and can interpret the data for you.

You probably have good memories of your life in your home. Spoiler alert! That has zero value to the next buyer. However, by staging your home, and presenting your home to market in amazing condition, you do tell the potential buyers that you have loved and cared for your home. That does have value!  Ask your agent how he or she generates buyers. Most agents do not have a clear plan for finding the precious few buyers available. I’m bringing it up, so you know we do.

When it’s time to discuss the anticipated sales price range, and suggested list price, does your agent wiggle in her chair? Or does your agent have a clear picture of the road ahead, and is ready to show you what you need to know to make a good pricing decision? Whether it’s us, or someone else, don’t just go with the highest “bidder”, or the agent that says “sure, we’ll try your price”. That will cost you money.