The following letter was written by our Company’s owner, Mr. Bob Hecht, to our seller clients during a slow housing market. I put it in my blog because I feel it is helpful to all.
July 25, 2008
To Our Sellers:
I’m sure you have read and heard more about our current economy and the national housing market than you care to know about! This letter is being written to give you important information about our local market, what we are experiencing and how we plan to achieve our objective of securing a buyer for your property.
Yes, it is true we are in a buyers’ market. Foreclosures have hurt the sale of homes, condos and properties, the inventory levels are much higher than last year and houses are not selling at the same pace they were 12 months ago. In our local area, we have seen some decreases in the number of homes and properties sold, but are fortunate that prices are holding steady in comparison to other areas of the country. Many of the buyers being relocated from other areas cannot sell their current homes and cannot purchase here until that house does sell. That’s the bad news.
The good news is interest rates continue to remain at low levels, and those serious buyers in the market have favorable options and conditions to secure a mortgage. If your house is priced correctly, staged correctly and marketed correctly, that buyer should choose your property over the competition and our objective above has been achieved.
Many buyers are holding back, but they are not the only ones waiting in today’s housing market. There are sellers postponing putting their houses and properties on the market because they are convinced that now is not a good time to sell. They would prefer to wait for a better market.
Waiting could be risky if you need to make a move within the next year or so. Most areas of the country are mired in a slow market where sellers are finding it difficult to sell, at least at a price they would be willing to accept. There is no guarantee that if you wait to sell, the market will be any better than it is now, at least in the short term.
However, the market isn’t slow everywhere. Even though the overall market might be soft, there can be pockets that are hot. The hot spots need not necessarily be a specific location; they can be a certain type house within a location. Your agent has the statistics for our market and will share those with you so you will have the same facts that we evaluate on a regular basis.
This letter is being sent to each of our clients to discuss the importance of pricing and staging in attracting a buyer for your property. The management and marketing team at Century 21 Hecht has been working on different marketing ideas and feel we can and will offer the best marketing possible for your property. The Internet is very important and we have your property exposed on as many sites as possible; this is supplemented by our print advertising campaign, as well as the “normal” real estate marketing avenues. We have the marketing under control, but continuously review it for additional opportunities.
Staging is simply defined as your house “putting its best foot forward” and needs to be completed if not already, so your house shows the best possible. Staging normally involves removing clutter and cleaning throughout, painting where needed, touching up landscaping where needed and basically making sure you are ready to really impress that potential buyer. Your agent can help with this and should go through your house with you. You should have already received our booklet titled “Advice to Help Sell Your Home.” If not, your agent can provide that as well.
Pricing is very important in our current market. If you are serious about attracting a buyer and selling, you must be priced to beat your competition. Our agents know how to calculate the rate of absorption of listed properties into the market, and can guide you through the process to see how many months inventory there is for your area, and from there you can choose the correct price. Pricing has to be updated minimally every 30 days, if not sooner so you can remain competitive. You want your property to sell for as much as possible, and we want that for you also but unless your house is priced where it should be, the buyers will not be attracted.
If your house has been on the market more than 60 days and you have not had the number of showings you and your agent expect, and you have not had a serious inquiry, there is a problem with the price. We are trained to do the proper research of the market and compare your house with others that have sold, and can recommend where you should be priced.
The asking price is solely your decision, and we respect that. Once you and your agent cover current market conditions and a new market analysis is completed, you may decide to adjust your price or you may choose to keep the price as it is and not sell at this time. We feel the market will improve over time, although at this point no one can accurately predict when the market will turn. Real estate is cyclical and at some point, we will move more toward a seller’s market.
Please consider the statistics and information contained in this letter, analyze your motivation toward finding a buyer and contact your agent to set up a meeting.
We at Century 21 Hecht Realty are 100% committed to you and to find a buyer for your house or property at a price and terms which are acceptable to you. We are not wavering from our commitment, but feel you should have the facts that we are dealing with.
Selling in this market is not easy. But, sellers and agents who understand the market can do well selling today. They must be realistic about what they need to do to prepare their home for sale. Property condition is more important to buyers today than it was several years ago. And, the current market is extremely price-sensitive. There is no margin for error when it comes to pricing.
Thank you for your confidence in your agent and this company and we look forward to working with you.
Sincerely,
Bob Hecht
Dawn Judge is a North Carolina Real Estate Agent with Century21 Hecht Realty in Mooresville, NC.
704-929-2261 Please contact me with your real estate questions. I appreciate the opportunity to help!
