Sometimes It's Not Just a Business Transaction. It's An Emotional One.

When a home owner is selling their home after 30 or more years, it can be an extremely emotional ordeal. As I explained in my previous blog, many memories can be acquired over the years, and that home becomes more like a part of the family, rather than just four walls and a roof. So, when it comes time to move on and sell, the parting of ways can be excruciating.

For both buyer and seller, the process is like night and day. The buyer may have looked at 20 or more homes before they find "the one." To the buyer, the transaction is primarily business. They may love the home, but the emotional connection isn't there for them yet. They don't understand what it is like to part with something so emotionally huge as a house. The seller has kept up the home with love and care, and as they saw fit. So what if the furnace is 25 years old? It works, right? So what if the electrical is out-dated? It works, right? The seller has just gone day-to-day with these old and out-dated inner workings of the home, just letting them do their respective jobs, and has found no problems with them whatsoever. So, when a buyer comes in and does their home inspection and begins critiquing every nook and cranny, and making such comments like, "These floors are creaky." Or, "These carpets are old." Or, "The roof needs replacing," it can be insulting to the seller. The buyer may not intend for it to come out that way, but it can be taken to mean that the seller has not cared for their home in the manner in which it is expected. However, that is all a matter of opinion.

The thing is, buyers these days are ruthless. They are not here to make friends, and they will go to extremes to get what they want, even if it means they are not coming across in the best light. Their mindset (especially in this market) is that the seller "needs" them. It is highly unlikely these days that more than one offer will come in at the same time (or that a second offer will come in at all). Bidding wars are rare, and buyers are aware of that. In which case, they can become very demanding and over-bearing. They expect the world and refuse to compromise...even if the seller has come down substantially in price in order to get the home sold. Then, just when you think all is said and done, the buyer will ask for more, even when the seller has bent over backwards to accommodate. If you're lucky, a buyer will usually know when they are being out of line with their requests, and a Realtor can sense that. That is when saying, "Enough is enough!" is warranted.

When it comes down to it, if the buyer truly wants the house, both parties can come to see eye-to-eye. If you are able to break through the rough negotiation stages...you are in the clear. But, as a buyer, it will help you a lot more if you put yourself in the shoes of the seller and imagine what it must be like to close the book on a chapter that made for 50% of your life. If you are able to see it that way, the home buying experience can be a very joyous one.

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Everyone knows that buying a home can not only be emotionally burdening, but it can be financially burdening as well. That is why I recommend that all of you read a wonderfully insightful financial blog by Andrew Yates. In his threads, he will teach you how to manage your money in non-traditional ways, and his writing style speaks to the masses. He makes finance fun and interesting, therefore preparing you for the future so you will be able to make and save that money to buy your first home. Check him out @ FinFod.SquareSpace.com.

Home Prices Are Declining, So Don't Take It Personally!

Bob and Mary have lived in their home for almost 40 years. It was their first major purchase together as newlyweds, and like many new home buyers, the feeling of this purchase was indescribable. They raised their children, Sarah and John, in this house, and soon the house itself was more like a part of the family as opposed to just four walls and a roof. The memories that took place in this house are worth more than anything money can buy. John's first steps, Sarah's first day of school, John's first little league win celebration, Sarah's first date coming to pick her up, and the list goes on and on...

Now that the 'kids' are out of the house and married with kids and families of their own, it's time to sell. The upkeep and maintenance of the home is becoming more difficult for Bob and Mary as they are getting older. So, they regretfully decide to put the house on the market to make room for a new family to start memories of their own. They decide to call a Realtor to come price their home, and they are appalled by the price that is suggested. "But, this home is our pride and joy," Bob proclaims, "We have lived here our entire married life! How is it not worth more?" Mary asks, confused. After a few sleepless nights of mulling it over, Bob and Mary decide it's best if they sell, knowing after all the upgrades and changes they made, the 2 roofs they put on, the landscaping and sprinkler system, and the central air they installed, that they will be lucky to make the kind of profit they saw for themselves a couple of years ago.

Despite the Realtor's suggestion, they list the home higher than what the comparable sales in the area are averaging. For the first few weeks there are absolutely no showings while other homes in the neighborhood are selling. Their Realtor tells them that they will have to reduce. Sales are declining at a rapid pace, and Bob and Mary are missing out on valuable market time. They reduce the price by $20,000, and the showings start to pick up. Finally an offer comes in...at $25,000 under the new reduced asking price, but Bob and Mary are insulted by this offer and they reject it. Their Realtor begs them to consider a counter offer, and tells them that if they don't work with this offer they should be ready for many more lower offers to come in. And, he is right. The next offer comes in at $60,000 under the asking price, and Bob and Mary are beside themselves with anger, regret, and confusion. After a few short negotiations, they arrive at a selling price of $45,000 under the asking price. At this point, when all was said and done, Bob and Mary's house -- their nest egg -- had been undercut by the ailing economy. But they still have their memories.

This example is not too far fetched, and it's a depressing story that we, as Realtors, encounter on a daily basis. The declining market does not discriminate. It does not care that Bob and Mary have built not just a home here, but a life. Buyers today are extremely market savvy. They watch all the real estate shows, they keep up with housing prices, and they are fully aware that anyone who is selling in this market is selling because they HAVE to - not because they want to.

Obviously, as a Realtor, I want my sellers to get the most for their home that they possibly can. However, there are many obstacles standing in their way these days when it comes to achieving that goal: home inspections, appraisals, and of course, the ability of the buyer obtaining a mortgage. Taking all of that into account, sometimes the best scenario is to let it go and leave the past behind. It's sad, but true.

The Top 10 Worst Property Photographs (according to me)!

There are so many Realtors out there today who constantly complain that they haven't sold a house in months, and part of that reason is because their photography skills are terrible. The first impression is everything when selling real estate, and the first impression is usually the photographs. 85% of all homes are sold by buyers surfing the web. Therefore, image is everything. If bad photographs are attached to a home for sale making it look less desirable, then the potential buyer will quickly move on the next property. I have compiled my list of the Top 10 Worst Property Photographs on the internet today. Enjoy!

10

It's a corner of a room...I think. Not sure which room, exactly. But at least it's in focus, right?



9
I think there's a house behind that tree, but I'm not quite sure.



8
The cherry blossom's are beautiful. But last I checked, it's the house that's for sale, not the trees.



7
That's a snow covered pool, or a huge ditch in the backyard. Either way, Winter is over.



6
Is this a house for sale, or a prison cell?




5
Realtor Rule #343: Never take photos while intoxicated!



4 For Sale: Wonderful Home. Windows Sold Separately.




3 Messy? No...it looks fine. No one will notice. Don't worry!



2
Does that pile of underwear on top of the ironing board come with the house? Maybe that person on the far left was about to clean up, but they snapped the picture to quickly.


And you're #1 Worst Property Photograph (according to me), is...

1The Blurry Living Room! I guess this Realtor forgot to wear his glasses that day.