Half a Chance

My company, like probably every other real estate company, keeps track of listings taken vs. listings sold. Today I had a chance to review our averages for the last few years and the trend is startling. Check this out:

Percentage of Listings Sold By Year

2005 - 80%
2006 - 70%
2007 - 50%

These numbers are rough and rounded off, but there's a definite trend there, no? I would hazard a guess that the percentages for most other area companies are roughly the same (even though I'm sure a lot of companies don't want to admit to it). If this trend holds up for 2008 (and keep in mind this is totally hypothetical and purely unscientific), that means that at least 50% of the homes we have listed this summer simply won't sell. That's tough.

But that also means that - hypothetically - 50% will sell. So, who will make the cut? The extremely motivated: the folks who are willing and able to get their homes in pristine condition and who are also willing and able - you knew this was coming - to lower their listing price. Because the fact is that there are buyers out there, lots of them, they're just not that motivated. A few years ago, low interest rates and the prospect of getting rich fast motivated them. Today their biggest motivation is price, namely the lowest price they can get. This doesn't mean you have to give your home away, but it does mean that your home must be competitively priced. Now is not the time to get rich. Now is the time to cut your losses and move on if you have to move.

If you do have to sell, get a good agent who will market your home like crazy. Make sure it's getting lots of internet exposure and multiple photos on Realtor.com. And then listen to your agent. If they are doing their marketing and the home is still not showing, that price may have to come down and/or the condition of your home may need to be improved.

If you're not that motivated to sell, and you really want to get more money when you sell your home, now may not be the time to put your home on the market. I know that's hard to hear - heck, it's hard for me to say, considering I'd love to list and sell your home this summer - but it's the truth.

The good news is that homes are still selling. They really are, I promise. And just like everything else in life, this market shall pass - it just may not pass as quickly as a lot of us would like.