For What It's Worth

Trying to write anything about the current condition of real estate will invariably lead to stating the obvious. That having been said, sometimes it's necessary to do so. In driving down my suburban street this morning, in the space of a city block, there were six "For Sale" signs fighting for my attention. This, along with a complete lack of interest from buyers led my wife and I to remove our home from the market two weeks ago. Not that we wouldn't like to sell, but we have a 30 year old home in need of TLC and the days of brisk traffic are, as they say, history. We could sell it but the price we'd receive would be significantly less than it was worth only 18 months ago. Familiar?

Which leads me to the raison d'etre for my rambling. First of all, I wonder why anyone who doesn't need to sell right now, would. Let's face it. The word "glut" comes to mind regarding the available supply of single family dwellings. This premise is not advanced physics. There are far too many people selling, or bailing out, to recognize the full potential for an individual piece of property in our current economic condition. We won't recount the endless news stories that depict this condition. You've read them. So what does one do if one has to sell?

Here's the good news. There is a price at which every single property will sell. It's usually much lower than one would like, but it's there. So why are some homes still selling? Deep down, you already know the answer: the better condition the property, the more appealing it is in terms of appearance, layout, location, schools, etc., the more likely it will sell and the more money it will net the seller. A case in point is a home we listed this Spring that went under contract 5 days later, very close to full asking price. This, during the worst real estate market in 50 years. Why? It shows beautifully, is in the "right" school district, is on a quiet culdesac, was priced accurately, is on a stunning lot, doesn't look like every other house in the neighborhood, has been updated and it was extremely well kept. Which of those factors made the difference? The answer is: All of them.

Our personal home did not sell for a lot of the same reasons, though from a negative perspective. We'll take another shot at it as we continue to update and renovate and the market gets healthier - maybe this time next year? What the heck. We really like our community.

If selling, don't get trapped in "magical thinking". You can't arbitrarily affix a hoped for price that doesn't reflect the reality of a property's value. It is worth what the market currently says it is. If you aren't getting nibbles, there's a reason. If time goes on and there aren't any takers, you really only have two choices. You know what they are.