Gratitude Rocks

Recently as a way to close up 2010 and prepare for 2011 I took the advice from an article I read in Realtor Magazine and conducted a systematic polishing and organizing effort for my business. I cleaned out my database, analyzed the year's accomplishments and made plans for the next. One of the steps included in the guide was to acknowledge the people who helped make your year a good one.
I got started thinking about all of the people who helped me overcome challenges, achieve goals, and make all aspects of my life, both business and personal, generally terrific. I sent thank yous to clients, family members, my boss, the cleaning lady, my pastor, my kids' teachers, the babysitter, my workout buddy...the list goes on and on.  It cost me about $.45 per thank you, and was worth every penny. Judging by the responses I got you'd have thought I'd been sending out $100 bills. People really appreciated the acknowledgment, and I felt great to have surprised them with such a pleasant thought. I don't know or care what impact this has on my business, but I know that I will do it again.

Get Ready for a Jump in Inventory (Quantity and Quality!)

Recently Bank of America and GMAC resumed foreclosure proceedings on 100's of thousands of properties it had suspended earlier in the year. There are many implications of this move, but what the overall market will notice most is a fresh influx of new listings at bargain prices. Since the recession we've been seeing plenty of discounted properties, but mostly in the mid- to low-range. Something we haven't seen quite as much of yet is discounted luxury properties. The higher-end folks have done a decent job of keeping up appearances for the past 18 months, but for some this is the end of the line.

This is good news for buyers, not so good news for sellers. If you're already on the market, make sure you're priced competitively. This may mean putting the house at a price that is a lot lower than you had hoped to sell for. If that's too much for you to swallow, do some math. Our area (Cape Cod) is heading into a period of rational growth (as opposed to the recent irrational decline, which was preceded by irrational growth), so if you use a rate of 3-5%, figure out how long it will take until the FMV of your home matches your desired sale price. Is it worth the wait? If so, then pull your house off the market immediately and take good care of it for the next few years until you can market it again. If you're not willing or able to wait that long, get a reputable Realtor, find out what the real, live market value of your house is in today's market, and price it right there or slightly lower, and cut your losses.

If you are considering putting your house on the market in this atmosphere, you must be realistic. Look at the very recent (as in 1-3 months) comparable sales in your area (short sales count!), look at your competition, and make sure you are a couple of percentage points less expensive than your lowest-priced competition. If this process leads you to a price that breaks your heart (or your bank), get back into your head and do the math I talked about above. And consider the consequences of over-pricing your house--languishing on the market and suffering 'death by a thousand price cuts'.

We are definitely on the road to recovery, but there are still some tough times ahead for sellers. Those who will fare the best will price their houses with the market and prepare their homes for the stiff competition that is just getting stiffer.

REALTOR® Magazine-Daily News-B of A and GMAC to Resume Foreclosures