What Struggling Home Sellers Need To Know
The crash of the housing market nationwide has made real estate a hot topic for news people and fiction writers alike for more than two years. It seems that no matter where you look, somebody has something new to say about the current state of the housing market, yet they usually reference their story with hearsay or a biased assessment from a specific lobby.
The toughest thing about trying to sell a home today is determining who is giving the correct guidance and advice. There is so much bias in both spoken and written reports that frustrated homeowners can be confused very easily.
Home Sellers Beware Corrupted News
- The Homebuilder lobby pushes hard to show that new homes need to be built. Wouldn't you if you made your living building homes? Just take their reports (or at least their interpretation of the data) with a grain of salt.
- Real estate agents have seen their markets fall by 2/3rds. Let's put this in the simplest of terms. 2 out of 3 real estate agents are no longer needed, as compared with just three years ago. They are listing homes at prices that guarantee the home will fail to sell. Why? They want more homes to put on the market. They figure with their sign on it, even if it doesn't sell, it will get them calls from buyers who will buy something.
- National media. These stories (and I mean stories) are poorly researched. I have rarely seen an article that does anything but quote the National Association of REALTORS as their source. Or even worse, the National Homebuilders Association. These two organizations are good organizations and their mission is to help their members do more business, not report accurately the state of the current housing market. Newspapers especially should know better than to just "forward" NAR press releases as news.
- Real Estate Web Portals exist to drive traffic on the internet. The more traffic that they deliver, the more advertising dollars they can make. Many of these sites offer some really cool tools for home sellers and home buyers alike, unfortunately, they just aren't accurate ... yet. Too many of these valuation models are based upon "averages," and this is great for the "big picture," but it fails to help frustrated homeowners know what to do.
What Struggling Home Sellers Need To Know
Home Sellers need to know what is happening in their local market. They need to have a very real understanding of the supply and demand dynamics that specifically apply to their home. Many of us think of our home as a unique place on this world, and while we are living there, it really is. But once we decide to sell it, our home becomes a house, a commodity that must be sold or traded in a market filled with competition.
In the real estate graph above, we see that the inventory of homes in the Tallahassee real estate market is dropping! This is good news for home sellers, but it is only part of the picture. The green shaded area in this graph show homes are coming off of the market faster than they are entering the market ... and one would think that reducing competition can only help home sellers.
Unrealistic Home Sellers Are Giving Up
Unfortunately, this next graph shows that not all homes leaving the market are leaving because they were sold. As a matter of fact, more homes are leaving the market as "failed to sell" than are leaving due to the sale of a home.
Home Sellers Seek Better Information
Ultimately, a home seller with the best information will fare better than one with just hope and hype. If you have to sell a home in Tallahassee, make sure you do not end up as part of the red field in the real estate graph above. Too many homeowners are failing when trying to sell their home, and this is really not necessary.
You can sell your home in today's real estate market, and you do not have to "give it away." But you will fail if you just list it with somebody that doesn't know how to promote your home (house) within the correct competition price range. Remember, having the right information and working with the right company are critical steps to avoid being just another frustrated homeowner.
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Joe Manausa is a real estate blogger, a real estate investor and the Broker and Co-Owner of Joe Manausa Real Estate. He can be reached via e-mail through the Tallahassee Real Estate Website or catch his latest writings on the Tallahassee Florida Real Estate Blog , or by calling (850) 386-2001.