‘Tis the Season to List & Save

We all know why there’s a typical slowdown in listing activity right before the holidays, and why sellers think it makes more sense to wait until after the first of the year to list. I mean life every other day of the year is hectic enough, right? But for a seller – in this market especially, being “at the ready” for a potential buyer can be even more stressful and unnerving. True.

Another reason why sellers may think it’s in their best interest to wait to list, is the idea that serious buyers likewise go on holiday hiatus only to rev up again when the new year begins. Not true.

Clearly though, our clients cannot afford to wait until after the holidays to list their homes. And it’s up to us to advise them to reconsider making what will certainly be a costly decision for them.

So what can we do to persuade them otherwise? And potentially save them thousands? Well, for starters, use these talking points as the basis for a meaningful and enlightening conversation.

A Few Solid Reasons Why Your Clients Should List Before the Holidays:
1. In a normal real estate market, waiting makes sense. This market however, is anything
BUT normal.
• Our current real estate markets are hyper-local
• What is true in one city or community is not in another

2. In years past, the spring market would favor the seller. Today’s economy dictates differently.
• Seasonal selling is trumped by the necessity
• 2012 will favor the buyer
3. Increased demand currently outpaces any increase in supply of homes to the market.
• Supplies of homes are down from one year ago by as much as 50% in some cities
• Buyer interest and demand has increased as evidenced by the increase in pended sales
4. The ratio of homes entering the market to the number of buyers entering the market is 1:3.
• Absorption rates are near all-time record lows
• For now, banks are not significantly influencing the market with REOs
5. Historically, when demand is greater than supply prices increase. Current trends contradict this.
• Prices are being under cut by REO’s and short sales
• REO’s may influence a value by as much as 20% less of a sales price

6. The supply of homes coming to the market will be dramatically impacted by foreclosure properties being released by the banks.
• Even with a controlled flow of REO’s, it will impact the market
• No one really knows the number, but it is believed to be in the millions

7. Many believe this increase in inventory will far outweigh buyer demand.
• At minimum, it will affect current supply and demand
• If true, values will be affected

8. A ramp up in foreclosure will most certainly impact prices.
• Supply up, demand constant= decrease in prices
• Many areas in Orange County have a high concentration of REOs

9. National real estate experts believe we will not see a bottom in prices until Q1 2012.
• Optimistic

10. Others believe prices will drop 5% to 7% up until the end of Q1 2012.
• Pessimistic

The facts, the trends, the projections . . . they all support what we know to be true. If sellers are serious about selling their homes, NOW is a solid time to do so.

So get those conversations going. Because as always, it’s up to us to provide information and instill confidence in the clients we serve. Who else, if not us?

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