Home sales for the month of July are still about 3-4 weeks away from being released on a national level. Expect a reversal in the continuing bad news that has plagued the housing market for the last year. Why the change? Is it from the expected passage of the
Housing Bill making its way through Congress? Have the number of foreclosed homes finally reached their peak and now are beginning to level off? Have home buyer’s come to recognize that the bottom is soon approaching and pent up demand will drive the market higher? Or have consumers just been inundated to death by articles and advertising campaigns stating that “now is a great time to buy a house” and it is finally beginning to pay off?

The answer is ….probably not

It would be great news and also provide a much needed boost to the housing sector if we could pinpoint the expected July turnaround to the proactive position taken by consumers and to a lesser extent, government intervention. But the underlying reason of the better news can only be attributed to one thing, and that is…. time.

It was July 2007, when we noticed a substantial drop in home sales activity. Although projected home sales for the month of July 2008 will be predictably in line with what we have seen so far this year, when compared against last year it will appear that the housing market has began to steady itself and that the worst news is now behind us. The outlook for the remainder of 2008 also appears to be favorable based upon the recorded home sales in the back half of ‘07. While the next few months may begin to appear more positive, its not much to get excited about. But then again it will be portrayed as a sign that the market is on track and that in itself will allay consumer skepticism. The perception will be perceived as a return to normalcy and as we all know, perception is reality, when in fact you know it as a false positive.

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The Pasadena California real estate market has not flat lined, nor is it all gloom and doom. In fact there are many instances of homes selling and selling quickly. Why do some homes sell while others sit? If you have been reading the articles here at up2date, you probably are keenly aware of the importance of pricing in selling your home. In fact I have written about it, along with providing documented proof about it. My article about pricing your home showed the decline in value you can expect if you don’t properly price your Pasadena property correctly from the outset.

Success Story or Continuing Saga?

The biggest obstacle to getting your home sold is living in the past and trying to rationalize the value of your property and “what once was”. If you are selling your home you have to move away from the height of the market in August 2005. This cannot continue to be your reference point.

The sellers of this house realized that. This property is located in NE Pasadena and was listed for $700,000. It was in escrow in less than 30 days. The reason is that the sellers had an opportunity to relocate and were very reasonable with their expectations. They had a solid buyer and did not want to lose an opportunity. There is a saying in real estate that “Sometimes your first offer is your best offer” and that may or may not be true, but any offer is certainly worth a counter offer.

In Escrow in Less Than A Week

The sellers of this house understood the importance of pricing their home properly. How many houses in this market have an accepted offer after being on the market for only six days? Very few. How does a home sell so quickly, very simply it offers excellent value for the dollar. Value is best defined as “the price paid compared to the features or amenities that are offered”.

Does your home reflect a competitive price for the value that is offered? Before you answer that ask yourself “How many days has it been on the market?” The answer lies within. There is a house for sale in my neighborhood. In fact it has been for sale for over a year and with three different brokerage companies. Without seeing the house you know there is one overriding issue…..it offers no value at the listed price.

These Seller’s accepted The Secret

The owners of this property had a desire to move out of the area. They understood the key to selling their South Pasadena condo lied within the secret. As a result, they had an accepted offer in less than two weeks. Unlike many other property owners, they understood the fallacies in overpricing and thinking “we can always come down”.

So you see there are many success stories despite a slowing market. If your home has been listed for over 90 days it’s time for a reality check. When I list a house I let my potential client know that the biggest disservice I can provide is to overprice your property. Inevitably, sellers always begin to count their money. I cannot give someone an inflated value just to obtain their business. We take our fiduciary duty very seriously. People do not expect a property to stay on the market for months. Give me the Readers Digest condensed version. I’m not much on continuing sagas.

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