JANUARY 31, 2008 

WE HAVE SOUTHWESTERLY WINDS BLOWING INTEREST RATES VERY LOW ESPECIALLY AFTER YESTERDAY’S .50 BASIS POINTS DROP.   WE ARE LOOKING AT ADJUSTABLE RATES AND 15 YEAR MORTGAGES BELOW 5%. WE HAVE A STRONG LOW PRESSURE JUST SITTING OVER CONNECTICUT WITH INVENTORY LEVELS IN CONNECTICUT LOWER THAN 2006 http://www.raveis.com/localhousingdata.asp 

THIS PRESSURE SYSTEM OF SELLERS ARE SITTING AT HOME SAYING TO THEMSELVES… WE ARE GOING TO WAIT TO PUT OUR HOUSE ON THE MARKET UNTIL THE MARKET STARTS TO GO UP.  THEY ARE GOING TO NEED NOAHS ARK BECAUSE THEY WILL BE WAITING FOR 12 TO 24 MONTHS.  REMEMBER BILL COSBY’S LINE “NOAH, HOW LONG CAN YOU TREAD WATER”?  SO WEATHER WATCHERS … IMPORTANT OBSERVATION – SELLERS THAT HAVE THEIR HOUSE ON THE MARKET IN THIS MARKET HAVE TO SELL. 

FOR BUYERS WHO ARE LOOKING FOR A DOLLARS AND “SENSE” EXPLANATION – HERE’S THE SCOOP…

I JUST CLOSED ALMOST 3 WEEKS AGO ON A LISTING http://www.Ravies.com/geena I HAD IN THE FARMINGTON VALLEY (HARTFORD COUNTY).  IT WAS MY 3/3/3/3 SPECIAL.  3000 SQUARE FEET, 3 FULL BATHS, 3 FIREPLACES AND 3 CAR GARAGE.  CONTEMPORARY THAT WAS BUILT IN THE LATE 80’S AND THE KITCHEN WAS UPDATED WITH NEW CABINETS, GRANITE AND STAINLESS APPLIANCES.  NEWLY PAINTED EXTERIOR AND NEWER ROOF.  THE HOUSE HAD GREAT CURB APPEAL.  ALL BATHS WERE COMPLETELY UPDATED SOUP TO NUTS.  VERY PRIVATE LOT WITH LONG DRIVEWAY – GREAT SETTING.  WALKING DISTANCE TO A HISTORICAL VILLAGE.  I KNOW YOUR SAYING – GEENA, GET ON WITH IT – WHAT WAS THE PROBLEM.  ALL YOU SELLERS LISTEN UP…

I LISTED IT IN APRIL OF 2007 AT $424,900 AFTER I WENT OVER WITH MY SELLERS THE TREND ANALYSIS AND FINANCIAL ANALYSIS ON THIS PARTICULAR MARKET FOR CONTEMPORARIES AT THAT TIME.  THEY KNEW IN APRIL THE AVERAGE DAYS ON MARKET FOR THE CONTEMPORARIES.  IF THE HOUSE WERE TO SELL AT OR AROUND THE LIST PRICE I GAVE THEM WHICH WAS 389,900 THEY WOULD BE CLOSING IN NOVEMBER.  NOW THE WIFE WAS NOT HAPPY BECAUSE SHE WANTED TO BE IN FLORIDA INSTANTLY BECAUSE SHE HATES THE COLD.  THE HUSBAND HAD TO LEAVE TO START WORK IN FLORIDA SO THEY BOTH KNEW THEY WOULD BE SEPARATED FOR A LONG TIME IF WE LISTED AT $389,900.   SO, WHAT DID MY SELLERS DO?  THEY SAID LET’S TRY $424,900.  THEY SAW THE DATA AND THEY STILL WANTED TO TAKE A SHOT THINKING THAT THE MARKET WAS STILL HOT LIKE 2006 EVEN THOUGH THEY SAW MY TREND ANALYSIS WHICH CLEARLY WAS SHOWING THE AVERAGE DAYS ON MARKET IN OUR AREA WERE ON A AN UPWARD TREND.  BTW: IN 2005 THEY PAID $330,000 FOR THE HOUSE AND INVESTED $30,000 FOR UPDATES. 

SO, THE HUSBAND LEAVES FOR HIS JOB IN FLORIDA LEAVING THE WIFE AT HOME AT HOME TO STAY WITH HER JOB AND LIVE IN THE HOUSE WITH HER TWO TEENAGE KIDS.  MY WISH WAS THAT THEY HAD MOVED OUT COMPLETELY AFTER MY INITIAL WALK-THRU AND LEAVE THE HOUSE VACANT FOR ME TO SHOW BECAUSE SHE WAS NOT THE BEST HOUSEKEEPER AND THE KIDS WERE THE WORST.  THE SON’S ROOM SMELLED LIKE A THEIR WAS A DEAD BODY IN THE ROOM AND THE OTHER TEEN – GIRL WAS A SMOKER.  SO WHEN MOM WAS AWAY TO VISIT FLORIDA – THE TEENS WERE LEFT AT HOME ALONE AND I  HAD POST- PARTY CLEAN UP TO DEAL WITH AND SMOKING GOING ON IN THE HOUSE BEFORE OPEN HOUSES.   HAVING 20 OPEN HOUSES IN 8 1/2 MONTHS AND NUMEROUS SHOWINGS THE COMPLAINTS WERE THE SAME.  HOUSE SMELLED, HOUSE WASN’T CLEAN – GREAT HOUSE BUT…..  I HAVE A FEEDBACK SYSTEM THAT I JUST FORWARD THE FEEDBACK DIRECTLY TO MY SELLER SO THEY CAN SEE THE FEEDBACK DIRECT FROM THE HORSES MOUTH.  SO, BECAUSE OF THIS WE PLAYED THE INCH WORM GAME OF PRICE REDUCTION.  WE DROPPED TO $419,900, 409,900…THEN WE BROKE THE BARRIER OF $399,900 AND I GET “GEENA, WE CAN’T GO ANY LOWER.”  NOW IT’S LATE LATE INDIAN SUMMER- BEGINNING OF FALL – LEAVES HAVE TURNED YELLOWISH.  WIFE IS REALLY HATING IT SHE IS NOT IN FLORIDA AND SHE HAS BEEN SEPARATED FROM HUBBY FOR MONTHS.  I CALL HER INTO THE OFFICE TO EXPLAIN THAT BY WAITING AND KEEPING THE HOUSE FOR MONTHS AFTER GOING OVER ALL MONTHLY EXPENSES – SHE COULD REDUCE THE PRICE TO THAT TOTAL NUMBER AND BE IN CONTRACT IN LESS THAN A MONTH AND BE IN FLORIDA.  SO,  WE REDUCE AFTER THAT MEETING TO $369,900. WE NEEDED TO BE AT $369,900 IN JUNE.  NOW PLEASE KEEP IN MIND THE HUSBAND KNEW THIS DATA AND HE COULDN’T CONVINCE HIS WIFE OVER THE PHONE ALL OF THOSE MONTHS THE “COST BY STAYING” ANALYSIS.  IT IS TOUGH TO DO OVER THE PHONE IF YOU ARE NOT A MATH PERSON.  THAT IS HOW SHE ENDED UP IN MY OFFICE.

SO, NOW WE ARE AT $369,900 MID TO LATE OCTOBER WITH A 5% COMMISSION AND NOW I AM TOLD AGAIN  “GEENA, WE REALLY CAN’T GO ANY LOWER”.

LEAVES ARE NOW OFF OF THE TREES – IT’S FIRST WEEK IN NOVEMBER-ITS SOMEWHAT COLD  THE WIFE IS GOING INTO DEPRESSION.  WE GET A SHOWING AND OUR FIRST OFFER OF $300,000 AFTER TWO WEEKS SINCE THE BIG PRICE REDUCTION.  WE COUNTER AND THE BUYER GOES AS HIGH AS $325,000 AND THAT WAS HER FINAL.  MY SELLERS SAY “NO WAY AM I WRITING A CHECK AT CLOSING”.  THE WIFE IS ANGRY WITH THE BUYER – “WHO DOES SHE THINK SHE IS”? 

BUT THEN,  THE PERFECT STORM ROLLS IN.  A BIGGGGG NOR’EASTER – DUMPS ABOUT 14 INCHES ALL THROUGH THE NIGHT.  THE WIFE CALLS ME AND SAYS THEY WILL TAKE THE OFFER OF $325,000.  KEEP IN MIND THIS IS A WOMAN THAT STALLED THE PRICE FOR MONTHS BECAUSE SHE WANTED TO GET TOP DOLLAR FOR HER HOUSE STILL NOT UNDERSTANDING THAT IT COULD TAKE TWO YEARS TO GET THE NUMBER SHE WANTED.  REMEMBER I HAD TO CALL HER INTO MY OFFICE JUST TWO WEEKS EARLIER – WIPE HER TEARS BECAUSE OF THE MONEY THEY PUT INTO THE HOUSE.  SHE NOW HAS CALLED ME AFTER SHOVELING OUT AND SAYS ” SEE IF THE BUYER WILL REVISIT AND BUY THE HOUSE AT $325,000″.  I NEEDED SNOW IN JUNE!  NOW HER HUSBAND IS FURIOUS THAT SHE EXPECTED HIM TO TAKE A BIG HIT LIKE THAT SINCE SHE WAS THE ONE THAT WOULD RESISTED EVERY PRICE REDUCTION.  HE HAD TO FIGHT HER TOOTH AND NAIL ON EVERY REDUCTION.

SELLERS – LEARN FROM THIS STORY.  LISTEN TO YOUR REALTOR ON THE TRENDS.  THIS IS A PRICE DRIVEN MARKET.  I HELD 20 OPEN HOUSES AND WE HAD OVER 60 SHOWINGS.  IT WAS ADVERTISED TWICE WEEKLY AND MONTHLY – PHOTOS – BLACK AND WHITE AN COLOR IN ALL MEDIA ADVERTISING http://www.Geena.biz. IT HAD A KNOCK OUT VISUAL TOUR THAT MARKETED THE AREA AS WELL AS THE HOUSE.  ALL OF THAT DIDN’T BRING THEIR PRICE.  THEY COULD HAVE HAD DAVID YURMAN STAIR RAILINGS THROUGHOUT AND BUYERS WOULD NOT HAVE CARED.  THEY ARE LOOKING AT SIZE AND HOW LOW CAN THEY GET THE HOUSE.

BUYERS – YOU HAVE ONE YEAR TO GET INTO THIS HOUSING MARKET.  THIS IS THE BEST TIME IN THAT I CAN REMEMBER IN MY 32 YEARS OF SELLING HOUSES.  RATES ARE LOW AND PRICES OF HOUSES HAVE COME DOWN TO AFFORDABLE RANGES AND ARE STILL COMING DOWN.  IN CONNECTICUT IF THE HOUSE NEEDS WORK YOU CAN COUNT ON PAYING $80 TO $100 PER SQUARE FOOT.  IF THE HOUSE IS IN MOVE -IN CONDITION INSIDE AND OUT AND IN A GREAT LOCATION YOU COULD PAY BETWEEN $170 TO $200 PER SQUARE FOOT. 

FIND ONE REALTOR TO WORK WITH AND HIRE THAT REALTOR AND GET THE JOB DONE – DON’T WEAR YOURSELF OUT SEARCHING FOR HOUSES ONLINE THAT ARE NOT EVEN ON THE MARKET BECAUSE ALL WEBSITES INCLUDING REALTOR.COM  ARE NOT UPTO THE MINUTE UP TO DATE. REALTOR.COM IS ABOUT 4 DAYS TO 7 DAYS DELAYED.  YOU NEED THE REALTOR’S MLS FEED FOR INSTANT NOTIFICATION OF NEW TO MARKET PROPERTIES AND PRICE REDUCTIONS.  AND REMEMBER REALTORS REALLY DON’T GO TO WORK FOR YOU UNTIL YOU FIND THE HOUSE YOU WANT TO GO INTO CONTRACT.  THAT IS WHEN YOU NEED OUR EXPERIENCE TO PROTECT YOU IN YOUR ENTIRE PURCHASE PROCESS. 

FOR MORE DISCUSSON ON CONNECTICUT PROPERTIES OR TO DISCUSS BUYER REPRESENTATION ON A CONNECTICUT PROPERTY CALL GEENA 860-983-4446 OR EMAIL AT GEENA@GEENA.BIZ

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