Realtor Refrain: 'Put it in Writing'

Realtor Broken Record

Like a lot of Listing Agents (representing Sellers) these days, I find myself sounding like a broken record.

As in the following:

"Would your client entertain a really low offer?"

"Put it in writing."

"Would your Seller consider an offer 30% below their asking price?"

"Put in writing."

"Would your client pay $10,000 in closing costs, replace the (functioning) furnace, and throw in the plasma TV in the den?"

"Put it in writing."

Probes and Posturing

If the Buyer's agent and their client won't even spend an hour putting together an actual, written offer, they're not very serious (or, they're simultaneously probing multiple Sellers to sniff out a truly desperate one).

It's also the case that it's NEVER a good idea for a Seller to negotiate with themselves.

Which is why the standard response to any question beginning with, "Would your client take . . .?" is, "I'm sure that they'd accept a full-price offer; anything else, I'll have to run by them once I've got it in writing."

Is This Seller Telegraphing Something??

Subliminal Seller Messages

Yes, it's a tough market for Home Sellers.

And it's good staging technique to create clusters of three over fireplace mantles and other focal points.

Still, I'm not sure that the listing agent -- or their client -- fully appreciated the (subliminal?) message they appear to be sending in the photo above.

Staging & "Critical Mass"

Are More Sellers Staging Today?

It sure seems that way.

No doubt, that's because every $1 spent on staging can easily add $3 (or $10) to the value of a home.

And because, in a Buyer's market, there are lots of competing homes for sale, and to attract a Buyer homes have to look their best.

Virtuous Cycle

But therein lies another reason why staging is becoming standard practice: once enough homes begin to stage -- call it a majority -- the remainder have to stage, too, or suffer by comparison.

So, pretty quickly the % of homes at least minimally staged jumps from 50% to 90% or higher (excluding foreclosures and what I'll call "pure" estate sales).

P.S.: I inherited my Dad's corny sense of humor. I can just hear him saying, "virtuous cycle?? Isn't that like a Schwinn?"

"April Showers, May Flowers"

Appraisal Issues Back on the Front-Burner

As the saying goes, "April showers bring May flowers."

In the real estate market this Spring, the equivalent is, "April multiple offers bring . . . May appraisal issues" (OK, so it doesn't have the same ring to it).

One of the consequences of a home selling in multiple offers is that the winning bidder may easily drive the ultimate price well past what's supported by the comp's ("comparable sold properties"). That's especially the case in neighborhoods where all the recent sales are foreclosures being dumped by their bank-owners.

What happens if the house doesn't appraise? There are generally 5 possibilities:

One. The Buyer puts up more money.

Two. The Seller reduces their price.

Three. Some combination of #1 and #2.

Four. Neither #1 nor #2, in which case the Buyer's financing fails, and the deal derails.

Five. Buyer or Seller challenge the appraisal and/or the individual appraiser (and try to get another one).

Until recently, option #2 was a fairly common outcome.

Now, depending on how much equity the Seller has -- or doesn't -- that option can be off the table.