Bergen County Sellers in Different Situations

Some recent headlines I have read... "Home prices set to slide in ‘08", "Home sales dip; prices fall sharply", "Home prices post record decline". Everywhere I turn it seems that there is a negative comment about housing. We are certainly going through a change in the market. What I wanted to share this month were two experiences that I have had recently.

Helping people buy and sell properties isn't just about selling, it's about marketing. An effective homeowner needs to implement strategies that will get their home seen by as many people as possible. The more showings a home gets the more likely an acceptable offer will come. The majority of people partner with a Realtor to get their expertise, opinion and strategy. The desired outcome is to receive the most money for your home. A successful Realtor will help you reach your goal.

Our first story began in the spring of 2006. I was driving down a local road and saw a For Sale by Owner sign. I placed a call to the number on the sign and asked the woman if I could come by and see the house. I visited the home the next day. When I asked the price she said that she was asking $575,000 and was a little flexible since she wasn't paying a fee. I asked how she came upon that price and she told me that she had a "friend" in Real Estate. My professional opinion was that the price was way too high. The home came on the market a few months later for $544,000 then reduced to $519,000, then again to $499,000. Then it was removed from the market. Months later, a second Realtor markets the home starting in October 2007, now it is at $469,900; in January 2008 the price reduces again to $439,900. The question we have to ask is whether this homes value was dropping or whether it was just grossly overpriced to begin with. My answer is a combination of both. The story does have a happy ending. I was working with buyers who were interested in the home. We put in an offer of $380,000 which was accepted. This particular home came down from $575,000 and ultimately sold for almost $200,000 less. Ironically, the home sold for $12,000 more than it was purchased for in 2003.

The second example is about a home where the homeowners appreciated the power of marketing. Their home was in pristine condition, they had labored many hours to get it that way. This family was serious about selling their home. They did not try to sell it by themselves. They hired a professional with proven strategies to get homes sold in this challenging market. They did their homework; they visited all the homes in their town in their perceived price range. Their Realtor gave them the proper information and insight to make good decisions; based on that information they priced their home appropriately. At the first Sunday open house there were over 45 families that came to visit. There was quite a buzz about their home. The following Tuesday the home was presented specifically to local Realtors. By Tuesday night there were multiple offers on the home. Were these people just lucky? I don't think so. Setting realistic expectations and having a power partner in Real Estate make all the difference.

Are these truly two different Real Estate Markets? I don't believe so. As a Realtor, I speak with buyers and sellers each day. Each home has a fair market value price. The first example was originally priced way above that price. As markets adjusted the seller was forced to reduce and reduce until settling on a price that was fair to both buyer and seller. Imagine the potential emotions of that seller. Waiting and waiting and finally accepting a price that they believe is "giving their home away". In the second example a well educated seller was able to have a great idea of what the fair market value price was and price their home accordingly. Their result was a quick sale at a fair price. Every seller has the same decisions to make. Which seller would you prefer to be?

Here is the good news: People are buying and selling homes in 2008. Every home is unique and requires a customized marketing plan. What works for your neighbor may not necessarily work for you. Your home is probably your most valuable asset, treat the decision to sell with care. Find a professional with a proven track record who knows about marketing and more importantly has been getting the job done for people.

For more information on this or any other topic, call Sal Poliandro, Realtor, Marketing Advisor, Short Sale Specialist

ePRO, SRES at 201-259-2187, or visit our website: www.SalAndDawn.com

Sal can be reached by snail mail at RE/MAX Properties 81 North Maple Avenue Ridgewood, NJ 07450