We’ve been talking a little bit about when you have a false start as a seller. It’s kind of scary because you come out of the gate, you’ve cleaned your house, you’ve got it staged just properly. You’ve done everything you’re supposed to do to prepare for a sale and activity in the marketplace, and then you get silence, or close to silence. Or you get people in the house that say, “I don’t want to buy this house” and they go buy another house. That’s when you’ve got to have a good conversation about what to do next.
Bob Nelson, Eugene real estate investment broker
Marcia Edwards, Eugene residential real estate broker
Bob Nelson: It happens periodically. For instance if it’s an income producing property that happens quickly. If you don’t receive at least interesting phone calls from buyer’s brokers. Brokers that represent the buyers, if they’re not calling and asking questions and showing interest, you’ve got an issue. What’s happening, people are voting, but they’re voting “no” and they vote “no” by being totally silent and going away.
Marcia Edwards: And I’ve got to say in residential real estate it has sped up as well. I used to say let’s wait 60 days to see how the market treats this home, now I say within 21 days we need to sit back down and say, “What’s not clicking?” Is the message not accurate? Are we not portraying accurately and exposing it to the marketplace it should be where the buyers are located? Or is it something that is in regards to the condition of the property? They’re disappointed when they come in? Or is it just I can get more house for less money on other properties?
Bob Nelson: And as that happens, there will always be someone who will take a sniff, and take a look at it, saying, “You know that may be a good situation” but they’ll kick the tires enough. Maybe they make an offer, maybe they don’t, but they at least will look. When there’s no looking whatsoever, they’re voting with their feet. They’re going away.
Marcia Edwards: I would say a rule of thumb would be if you’re getting showings but no offers, you’re probably you know in the range of 5% off on price, but if you’re not getting showings, you may be 10% off in price. In residential, that’s pretty significant.
Bob Nelson: Yes, that’s huge significant, and that all relates back to the equity position because the debt is not getting any smaller, it’s just the price is getting smaller which means your equity or the cash you’ll receive at time of closing gets smaller.
Marcia Edwards: That does not necessarily mean that you should take it off the market and continue to live there. It may be that the rate of appreciation of this particular asset will not increase and it’s a good time to change into something that has a higher rate of appreciation, or a more productive property.
Bob Nelson: Well in some instances you’re not given that opportunity. It’s divorce, it’s health, its other things that are pressing you, where you have to tap your equity position in order to solve the problem. You have to stay the course. You have to adjust and accept the market.
Join Eugene, Oregon, real estate experts: Bob Nelson, Real Estate Investment Broker with Pacwest Real Estate Investments, and Marcia Edwards, Residential Real Estate Broker with Windermere Real Estate, daily at 5:30 on KPNW for the “Real Estate Today” radio show.