Chasing the Market Down - Are You Guilty?Chasing the Market Down - Are You Guilty?Are you “Chasing the Market Down”?
Shortly after your home went onto the MLS the Long Beach real estate market took a steep decline. A consultation with your REALTOR® revealed two new comparable listings in your community priced well below your current list price at $725,000 and $705,000. At about the same time a couple of other comparable homes for sale, in your neighborhood, had reduced their listing prices to $720,000 & $710,000. You were now priced high on the market at $750,000, on the market for 21 days and your REALTOR® says, in need of a large price reduction.
Chasing the Market Down is a very serious situation in todays real
estate market. Many sellers are doing this across the nation. The
clear majority of them never sell. The expired, cancelled and
withdrawn listings on the MLS reflect far more properties than the
Solds do. Unless you actually need to sell your home this is not the
time to be on the market.
Have to go deal with an offer……….
Laurie Manny Long Beach Realtor® Prudential California Realty 3728 Atlantic Avenue Long Beach, CA 90807 (562) 212-5420 Related PostsHow to Hire the Best REALTOR in Your AreaRelocating to Long Beach? About Long Beach California FREE Southern California and Long Beach MLS Search Downtown Long Beach Market Report - January 2007 http://www.longbeachrealestatehome.com/001B9C Posted on February 01, 2008 16:58:19 by Laurie.Manny
 Laurie.Manny  18 feedbacks »
Comment from: Dennis Blackmore [Visitor] · http://www.realestatevirginiabeachhomes.comLaurie, this is priceless.  Permalink February 02, 2008 20:11:24Comment from: Laurie Manny [Visitor] · http://www.lauriemanny.com/Dennis, I thought so too! Permalink February 02, 2008 20:35:25Comment from: Kaye Thomas [Visitor] · http://beachcityrealestateinfo.blogspot.comLaurie, Absolutely the best explanation I have ever seen on chasing the market down. This post should be mandatory reading for sellers and their agents. Permalink February 02, 2008 21:20:55Comment from: Albuquerque realtor [Visitor] · http://nmhomesonline.comNow is a horrible time to sell; don't sell unless you absolutely have to, just like you said! Permalink February 02, 2008 22:20:30Comment from: Laurie Manny [Visitor] · http://www.lauriemanny.com/Kaye, Thank you I agree
Albuquerque Realtor, It is not a good time to sell. Only those who absolutely have to sell should be on the market now and they should be on the market "Priced to Sell". Permalink February 02, 2008 22:47:49Comment from: Missy Caulk [Visitor] · http://AnnArborRealEstateTalk.comLaurie, this is fantastic. I spent all day yesterday getting price reductions on houses that were clearly chasing the market down. That is the very words I used. Funny, about the plasma TV. I have found CMA's done 3 months ago and no longer valid, we have to update constantly. I am pricing my listings now on the active ones, NOT the sold ones. They are irrelevant if you can't get a showing. Permalink February 03, 2008 08:57:32Comment from: Laurie Manny [Visitor] · http://www.lauriemanny.com/Hi Missy, For some reason everytime I receive an offer on a home that has a big screen plazma TV the buyer is requesting that it be included in the deal. I understand why they want the TV's, but it just struck my funny bone. It's interesting about using the actives to price a property. Pricing is a delicate balancing act these days, the only way to inspire buyers to view a property is to make the price irrisistable, which means lower than existing homes on the market. Permalink February 03, 2008 12:32:29Comment from: Donovan [Visitor] · http://fundys.comYou are right on. I was lucky and sold my Long Beach house in August 2007 the way you suggested. It sold with 0 days on the market. I spent $100,00 to replace everything in the house to make it move in ready. Then I priced it below market at $699K.
I took the first offer I received at $689, and now am living in Spring Green Wisconsin by the Wisconsin River in the same size house, but with 2 acres of land. My WI house cost me $155K by the way. And if I was any happier, I’d have to be twins.
I just talked to my realtor in California yesterday, and she informed me that if I was to sell that same house today, I would be lucky to get $600K.
Lesson for people to learn. Greed is NOT good. Bye from the best place to live in the US, Spring Green, WI.
Donovan Permalink February 03, 2008 21:33:19Comment from: Laurie Manny [Visitor] · http://www.lauriemanny.com/Hi Donovan, Thanks for stopping by and sharing your story. You were very lucky that you were able to sell when you did. I often wonder if anybody thought that home prices would drop as much as they have, as rapidly as they have. Ahhh, you call it greed. I like people that call a spade a spade. It is part greed, part denial. Many sellers just don't want to believe and have convinced themselves that their home is really worth more for a variety of irrelevant reasons. Sometimes we can get through to them, sometimes we can't. We save the ones we can. Glad to hear you are happy in your new diggs, they sound fabu! A lttle too cold for me up that way. Best of luck in your new home, I hope you make many happy memories in it. Permalink February 03, 2008 23:30:05Comment from: Elaine Reese [Visitor] · http://www.reesespiecesofrealestate.comThis is one of the hardest stories to get sellers to accept. I always go through this issue when reviewing the comps... then they'll say "well,can we just try $10K more". Sigh! Very well written, and timely. Permalink February 04, 2008 09:14:08Comment from: Laurie Manny [Visitor] · http://www.lauriemanny.com/Elaine, As Realtors we see the effects of chasing the market dailly. Consumers read the news - we all know how reliable that is. It is difficult for sellers to wrap themselves around the declining values and accept the reality of what their home is likely to sell for. I wish we had magic......
Permalink February 04, 2008 10:30:14Comment from: Borino [Visitor] · http://www.ExpiredPlus.comGreat insight, Laurie. "don't kid yourself about the actual value of your home - it's worth what a buyer will pay" - sooo true! I would add "and what the lender thinks it's worth".
Permalink February 04, 2008 12:32:46Comment from: Laurie Manny [Visitor] · http://www.lauriemanny.com/Borino, Yes, it's worth what a buyer will pay - and not a penny more and yes, IF the lender/appraiser agrees. Appraisers are hired by and answer to the lender, they are finding themselves having to adjust for the declining market as well. Permalink February 04, 2008 12:40:58Comment from: Jody McLeod [Visitor] · http://www.pdxmojo.comGreat article! I need to show it to my seller who is on the verge of foreclosure, has a ton of unfinished projects to do on his house, but still wants 10 percent more than the house is worth. *sigh* It will take a few lowball offers to make him see the light. Permalink February 15, 2008 09:59:08Comment from: Laurie Manny [Visitor] · http://www.lauriemanny.com/Hi Jody, It is unfortunate that so many sellers do not want to see the truth of today's market and the actual value of their homes. They hold out for so long, so badly wanting to believe, that they lose tremendous amounts of potential profit often resulting in short sales or foreclosures. I wish there were magic words but we can only tell them the truth, we cannot make them believe. Sometimes even a few lowball offers doesn't get them there. Perhaps THIS is the message the media should be spreading. PRICE IT RIGHT! CHECK THE COMPS WEEKLY! ADJUST YOUR PRICE!
Permalink February 15, 2008 11:23:21Comment from: Mary THonmas [Visitor] · http://www.realestateforthesoul.com
Laurie, THis is another excellent article by you. This is so important information to get out to homeowners. You re a great source for the always first with current market are always the first source of current market information. Permalink March 19, 2008 18:41:26Comment from: Julie Ferenzi [Visitor] Laurie, I thoroughly enjoyed every second of this article. Recently my very own sister and brother-in-law were stubborn sellers, even given their Realtors® expert advice ;) They learned the hard way here in Chicago too.. Great and informative article which is a great read for any seller! Permalink April 29, 2008 17:49:38Comment from: Laurie.Manny [Member] · http://www.longbeachrealestatehome.comJulie, You made me laugh. Family is often the most difficult to deal with. I cringe when a buyer tells me their lender is a relative. For some reason,in business deals, strangers often are more respectful than ones own family. Strange dilemma! We can only hope that your other family members (future clients) will learn from your sister and brother-in-law’s mistake. I hope they are owning the responsibility and not placing blame. Permalink April 30, 2008 04:27:55Comment on this article This post has no comments awaiting moderation. |
An offer comes in at $655,000. They want 3% in closing costs and
the damned plasma TVs (whats with the damned plasma TVs anyway?!?)
You tell the REALTOR® to get to your house as fast as possible and
accept the offer as written. Your wife is standing behind you with a
bat at this point! 
To begin your search for the perfect home or to sell your home in the Long Beach area, begin your journey by calling Laurie Manny at (562) 212-5420.
