No one has a crystal ball so determining when a market is going to hit bottom is pretty much like shooting craps. Sooooo – anyone trying to TIME THE BOTTOM is clearly a gambler. Its not savvy, its not cool or even all that smart – and yes…it is RISKY to try to time the bottom.
Gambling on lower prices and lower interest rates….
People think that if they haven’t made a decision to buy that no decisions were made. That makes them feel “safe”. NOT TRUE. The buyer made a decision and that decision was to punt. So in reality, the buyer is rolling the dice that the market will decline more or at least not improve. They are also gambling that interest rates will remain at record lows. As one famous blogger (Lenn Harley) puts it to her buyer clients “The market will bottom six months before you decide its time to buy a home.”
When I first entered this business almost six years ago – the question of whether or not to stage a property would have been met with peals of laughter. Buyers were snapping what they could wherever they could. Granted staging appeared to bring even better offers – but with a market like that some sellers didn’t even bother to clean, let alone stage. But just as I walked through the doors of my first brokerage – the housing bull was turning to a big bad bear and within six months we were starting to see a new phenomena – “the staged home.”
As bear market rumbles on – staging is become the norm and those who don’t do it will often find their home languishing on the market. Buyers have plenty of choices and are only buying the cream of the crop – while leaving the rest behind. If it looks dirty, or in need of painting, if the carpets are dirty or old – rest assured – unless you really slash the price to the bone – your home will sit.
A Tale of Two Condos Units:
To Drive the point home. Last winter I had two condo units in the same complex on the market at the same time. The one I listed first was vacant with no furnishings and had not be repainted. The sellers had already taken a severe hit in the housing market downturn. Understandably, they balked at the idea of painting and renting furnishings. As time marched on and no offers came, I kept driving the conversation back to staging.
Meanwhile, in early February, I listed another unit in the same building. This unit had been beautifully furnished by the sellers and since they were still living there, the unit was able to be shown to best advantage. Sure enough – the first second open house – the unit sold to a buyer who had come through it twice on the same day. They loved everything about the place and could “mentally move in” because the sellers had pared down their belongings. Read the rest of this entry »
This is a story about selling your home during a housing recession.
Sellers with homes listed today will be able to identify with some of the antics that buyers in a bear market will pull. But this is about a listing that was active 14 years ago in 1996 – during another deep housing recession. I wasn’t a real estate agent at the time, I was a seller. My mother had just died after a prolonged illness and I was listing her house for sale. The house in question was a beautiful 1932 Tudor sitting on prime property with sweeping golf course views in wonderful residential area in White Plains. There was a good deal of emotion involved since the home in question had been designed by my Grandmother and built by my Grandfather.
Although I wasn’t an agent I was smart enough to read the newspapers and so I know it was a crummy market. The house would have been worth roughly $600k just a few short years ago – but in 1996-1997 I was hoping for about $550k – but knew I would probably only see a litte more than $500k.Gut instinct told me to rent the place, but my co-executor was adamant that the house had to be sold.
Nothing prepared me for the crazy home buyers that came through looking for a “deal.”
90% of them were bottom-feeders looking to steal a house – and looking for ANY excuse to chisel the price to the bone. My beleaguered broker came to me with all sorts of concession requests – some of which made sense. But more often than not, the requests bordered on the absurd. Some of the more hilarious issues are worth noting because when we see frustrated sellers – we need to be aware that their pain is real and that some of the crazy concessions being asked by buyers can be truly ridiculous.
Newly Reduced Price – the most competitive price at Jefferson Place above the ground floor.
The Residences at Jefferson Place in Downtown White Plains NY.
Jefferson place is a new and very desirable complex located in downtown White Plains in the coveted 10605 zip code. The complex spans an entire square block between Livingston Ave. and Rutherford Ave. in White Plains, NY. The units cover two major addresses: 300 Mamaroneck Ave. and 31 Greenridge Ave. The side facing Mamaroneck Ave. is an eight-story urban mid-rise with a sophisticated brick façade. The other side of the complex on Greenridge gives a bow to the suburban neighborhood of the Highlands that it borders. Jefferson Place is just steps away from all the shopping and dining that downtown White Plains has to offer.
Just across the street on the Mamaroneck Ave. side there is plenty of fine dining, take out and retail – all within easy walking distance of the complex. The heart of the downtown with all it has to offer is just a stroll down the street. Walk to almost everything: Shopping entertainment, fine dining and so much more. Walk score is 92 out of 100.
No one has a crystal ball so determining when a market is going to hit bottom is pretty much like shooting craps. Sooooo – anyone trying to TIME THE BOTTOM is clearly a gambler. Its not savvy, its not cool or even all that smart – and yes…it is RISKY to try to time the bottom.
This is a story about selling your home during a housing recession.
