Lately I've noticed that many people that I run into in Michigan are also living in a different state. No, it's not that they have two homes or spend time traveling across borders. The different state that they live in is the state of denial. "Wow", they say, "I'm lucky that this downturn hasn't impacted my home's value." They commiserate, "Poor bob, my neighbor; his home has dropped 25% in value; but, mine is still worth what it was a couple of years ago." "I know that the rest of the neighborhood is down, but I have the best home in the area and mine has held its value."
The other thing that I hear a lot is, "I won't give my home away. If buyers aren't willing to pay what its worth, I'll just keep it." Well, I've got news for those people. Buyers are offering what its worth in today's market and if you won't sell it for that; well, you can keep it, because there are ten other sellers out there who will sell their homes for what the market says they are worth.
I'm just not sure where people are coming from when they say that they want to sell and then, in the next breath, basically state that they won't sell. They are living in a state of denial. If Yogi Berra were her he'd come up with something like, "You can't sell it, if you won't sell it." Well said, Yogi.
Here's the raw truth - your home is worth 20-25% less right now than it was 3-4 years ago. It is generally accepted in real estate circles that 2004/5 was the peak of the current real estate market and prices have been dropping ever since. Locally, we have seen a 1% per month drop in values/prices for the last 18 months. No one's home was/is exempt. Even lakefront homes in prestigious neighborhoods have fallen in value and in the prices that they will fetch.
It's not pleasant as a Realtor to have to tell potential listing customers this truth; however, it would be less than honest and a waste of their time and mine to go along with the charade that their house has not been impacted by the downturn. About the most encouraging thing that I can tell the owner of "the best house in the neighborhood" is that having the best house should help sell it quicker at the prevailing market price. That could mean saving thousands of dollars by not having to make several months worth of house payments; however, it isn't going to magically increase the market price.
So, get over it. Deal with it! Move on! Live in the moment, not in denial. Call me for an honest opinion of what your home is worth today. Just sit down before I tell you.
The other thing that I hear a lot is, "I won't give my home away. If buyers aren't willing to pay what its worth, I'll just keep it." Well, I've got news for those people. Buyers are offering what its worth in today's market and if you won't sell it for that; well, you can keep it, because there are ten other sellers out there who will sell their homes for what the market says they are worth.
I'm just not sure where people are coming from when they say that they want to sell and then, in the next breath, basically state that they won't sell. They are living in a state of denial. If Yogi Berra were her he'd come up with something like, "You can't sell it, if you won't sell it." Well said, Yogi.
Here's the raw truth - your home is worth 20-25% less right now than it was 3-4 years ago. It is generally accepted in real estate circles that 2004/5 was the peak of the current real estate market and prices have been dropping ever since. Locally, we have seen a 1% per month drop in values/prices for the last 18 months. No one's home was/is exempt. Even lakefront homes in prestigious neighborhoods have fallen in value and in the prices that they will fetch.
It's not pleasant as a Realtor to have to tell potential listing customers this truth; however, it would be less than honest and a waste of their time and mine to go along with the charade that their house has not been impacted by the downturn. About the most encouraging thing that I can tell the owner of "the best house in the neighborhood" is that having the best house should help sell it quicker at the prevailing market price. That could mean saving thousands of dollars by not having to make several months worth of house payments; however, it isn't going to magically increase the market price.
So, get over it. Deal with it! Move on! Live in the moment, not in denial. Call me for an honest opinion of what your home is worth today. Just sit down before I tell you.
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