whacky!
When sellers call us, we realize that they do not understand that, because of the multiple methods we employ, then attempting to estimate the best market value to sell their home, takes several hours of research and calculations. Usually, the seller calls with great anticipation in their voice, then nervously begins to articulate every cent they spent to upgrade or maintain their home – and then, afterwards, casually asks us … so what do you think is the best price I can get for my house? Most sellers have no clue as to what factors drive market pricing – and that’s ok, because we do, and we can help them.
Homeowners are driven by the emotional attachment associated with the purchase price they paid, as well as the loving care and attention given to their home - and not logic. Logic is rarely an element in home sales transactions. Here is what we encounter often. Many people who purchased their current homes in say 2005 to 2006, just at the point when the market peaked, have an expectation that they should be able to sell their homes for at the least the same price they paid. Well… we empathize with this – we really, really do. However, like it or not, the market has declined by 30% over the last few years, and therefore the likelihood of selling your home for that inflated price is… well… zero. This tells us that some sellers are either disillusioned that they can find the one uninformed buyer who is willing to overpay for their home, or maybe they are simply in denial that they will have to forfeit equity in exchange for moving onward with their goals and desires. Another group of sellers, are those who purchased their homes prior to the peak, and are willing to defer their selling decision for a year or so, with the expectation of a full market recovery, and then, scoop up those unrealized gains that they now wished they cashed out, at that peak period.
Some buyers are equally out of touch. It is not uncommon for buyers to search in the more prestigious neighborhoods, hunting for houses having the best features and benefits, expecting to snatch them up at ridiculous bargain prices. I mean come-on … we appreciate a good value as much as anyone, but buyers today are looking for turn-key, move in condition, ocean-view properties and at prices well under market value. Sure… there are fantastic values in the market today… but bargains … well, just think about the phrase “bargain basement”, and what images come to your mind. Yeah right! Generally, you get what you pay for, and we just hope that you try not to forget that!
The Real Estate market, conceptually is the same as the stock market. Buyers and sellers come together and exchange value for value via a broker. Some win and some lose. Here is something to consider. You see … many segments of the economy today are characterized as a buyer’s market, and Real Estate is no exception. Worse yet, is that consumers are concerned about the uncertain future of the economy, overall fiscal growth, jobs availability and security, and as such… consumer confidence is negatively impacted. Buyers today do not want to be caught purchasing a home with a looming threat of further declining home prices. So, to some degree, we have a hedge market, except that buyers are hedging on the downward side. Buyers are very well informed these days – so as a seller, we would not place much faith in finding the single moron willing to overpay. Buyers know that the market values have declined by 30%, and to hedge against any further near-term market declines, they are considering offers at 40% to 50% below recent peak-time prices. This represents a throwback to year 2002 price levels.
It is easier to understand at this point why many Real Estate experts are predicting a slow recovery. The gap representing the difference between the seller’s perception of value and that of the buyer, is not narrowing. Pardon us if it seems as though we have personified buyers and sellers as if they are specific personality types – not our intention. Remember, in most cases, you may be a seller in one transaction, and immediately thereafter, a buyer in the next transaction, so your position will easily waiver from selling at the highest, to buying at the lowest.
So … here is the point. If you are a seller, get in touch with the key issues that are driving your motivation to sell, and then evaluate the benefits to you and your family, to moving forward with your life’s goals and dreams. If you are a buyer, experience the gratification that you can achieve your goals and dreams for yourself and family, and stop waiting for the deal of a lifetime. Ironically, as consumers in the greatest nation in the world, our decisions are often paralyzed by having an over abundance of selections.
Our goal is to help and guide people to buy and sell San Diego Homes: Contact us soon - and let us apply for the job of being your Real Estate agent.
Charles M. Schevker (CPA)
DRE # 01875556
Broker Associate
Prudential California Realty
1299 Prospect St.
La Jolla, CA. 92037
Main Office: (858) 357-9814
Sattelite Office: (858) 459-0501 ext. 319
Home Office # 1: (858) 750-2578
Home Office # 1: (858) 750-2578
Home Office # 2: (858) 412-6082
Mobile: (858) 449-8250
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