Misguidance on Real Estate plunge

[Smiling JOe]

2bfabian, your post #44 is a little silly. First of all, don't assume that you know how I conduct business. You are throwing around some rocks, but they are not hitting the target. A few points for you to note:
- Not all Realtors are the same
- I cannot speak for all other Realtors, but Realtors do have a Code of Ethics, by which many others and I do follow. I think you will find several of those Realtors posting right here on SoWal.com. That Code of Ethics states that we are not to place our own interest ahead of our customers.
- Not all sellers have guns to which they can hold (some people need or want to sell.
- Rather than holding to their prices which are not selling, people who don't have or need to sell, should remove their property from the listings. Ever heard of supply and demand? If these people who don't have to sell removed their listings, I think we could see the inventory decrease by more than 60%.

Perhaps you are scared that your property value is decreasing hence your thoughts expressed in post 44, or, maybe you have had a bad experience with a Realtor in the past. That does happen occasionally. I encourage you to think a little more broadly without the tainted glasses. ;-)

 

[Smiling JOe]

Well first let me talk to josh. I see you have been trying to give your property away, haven't you? Well, has it sold. NO, I did'nt think so. At any rate I was fortunate to have not dove in and and bought one of those condo's on the beach in 04,but those who did need to sit tight and hold on to their prices or it's going to be bad,bad timez for those realitors convinceing mr seller to gibb it all away you'llz be bezer off because people don't buy on the fall of prices they buy on the rise or bottom. I'm not da moz edumacated person but I doz noze dat. And to shelly I say be nice and more agreeable sometimez:roll:

So let's say that no seller lowered their price. No sales transpire. Does that mean that we hit a bottom in your text book?

Let's use your theory for this example too. Let's say that all of the sellers, rather than lowering their price, decide to begin increasing their prices 10-30%. Do you think that buyers are going to suddenly come writing contracts from fear of not getting back in?

In both scenarios, lets keep in mind that while this is going on, even more listings are coming onto the market.

I really don't understand the economics behind your theories.

 

[2bfabian]

Well Joe first of all let me say how much I like your art. Especially the guitarist. Now going on to me selling my property thank goodness I not in a pickle like most that I have seen But with all due respect, and from reading some of your threads you seem some what more knowledgeable than me in this area,but my point is that as long as prices are being reduced to the point that they are the north west fl real estate market will stay stagnant. You know this and so do I. I am not say that some bottom feeder is not going to be out there and snatch up a house here and there, but the market will stay stagnant until people realize that this is what you pay to live on the beach. You can't tell me you have not seen Realtors panicking and going back to home owners and doing everything to convince them to sell cheap. And why not it's no skin off there feet so just do it as the Nike commercial says. When the baby boomer's start retiring over the next couple of years they will be looking for a place to spend there retirement at and its my belief they will pay fair market prices. But if you keep dropping these prices they will continue to wait so that they get the best deal out there. Like the feller said believe or not. I realize that there are very ethical Realtors in this area including yourself who I find much enjoyment Out of realizing that for the most part you are more informed than me. But having said that I still believe that until these Realtors stop dropping prices it will continue this trend.

 

[Bobby J]

I'm reminded of something I once said,any fool can give a diamond away but it takes a good jeweler to get what it's worth. We go back to my prior statement and that is these Realtors are dropping the prices because many of them did not manage their money during the frenzy, so now they go back to the home owner and out of their desperation (the Realtor) talk Mr and Mrs home owner into thinking there place is not worth anything and to go ahead and drop the price 10-30%. The way they look at it is they need to eat and 3% of something is all they care about. Basically continuing to drop the price and have Mr buyer say wait a minute I was going to buy but I'm just going to hold on longer because the prices will drop more. In the mean time nothing sells even with the continued drop of prices. My simple advice is to hold to your price and realize if you don't it's only going to continue downward. Ask your self with all the price dropping has is caused the market to change. No, and it won't until people realize this is the price to live in paradise. Not everyone needs a graduate degree and not everyone needs to live on the beach. Yes it is expensive but so is good health care. You get what you pay for so stop giving your property away and quit letting these Realtors who have absolutely no loyalty toward the seller and hold to your price. Because if you don't trust me you will be dropping them for the next 5 years. But if you hold to your guns you get the fair price that many are asking for right now but are being talk into giving there places away by Mr and Mrs Realtor.

What do you suppose a seller should do that has been on the market for 6 months, no activity, must sell? How long should sellers "hold to their guns" before they lower the price? There are properties out here that have been on the market 2 years! Should they go to the bank and say, "Mr. Banker I think this summer things will be looking up and I'll get you that money ASAP!" Basic economics tells us prices will drop. This is not because of agents but buyers not seeing value. There is too much inventory on the market. This pushes prices down. Mr and Mrs Seller need to understand buyers dictate value.

 

[2bfabian]

Oh and 4 the record I paid $90,000 for my place on Grand Lagoon 12 years ago. I turned down $425,000 in 04. I was asking 497. So no I am not upside down I just talking about what I have observed.

 

[2bfabian]

That's my point. Stop dropping the prices that goes for everybody. If they keep dropping people keep waiting. Wouldn't You? Let stock start droppng unless your shorting it your going to wait. Yes or no? thats what Question I have for you.

 

[Smiling JOe]

2bfabian. thanks for the compliment on my art. I can understand a little bit of where you get this idea and on the surface, that makes sense, but please explain how to sell the properties of the many people who need to sell. Open houses and ads in the Real Estate Book don't bring buyers, prices do. Of course a good Realtor can show the benefits of the property and maybe bring more information which substantiates the value of a listing, but the price has to be right to get them in the door. With increasing inventory, not all sellers will be able to hold to or increase their prices. In order to sell, if their property is equal in value and benefits to a comp listing down the street, the price will be very important when the buyer decides which one to purchase. Of course the Realtor working with the buyer may also play a vital role, but mostly, it will be the price.

My reason for taking a listing is to sell the property. Not to play the fishing game. If I want to fish, I will take my pole to the beach. I have turned down several listings lately from unrealistic sellers, not willing to price their property correctly. Again, eliminate the listings which people are fishing for money, and you will knock the inventory way down. Only after doing that, will we know the real prices. If your property is the only one in your neighborhood which is listed (scarcity), your idea of holding to the price has merit.

 

[Bobby J]

So you think if everyone stops dropping their prices the buyers will suddenly see the value? I think you may have something here but it would be impossible for everyone to get together and stop. This is a common market process. In a perfect world we would all have a big meeting and stop but that is the beauty of commerce. Someone is going to work out a better deal for someone else. For every upset seller about prices dropping you will find a thrilled buyer! The only thing I know for sure is this market will change and their is no way of stopping what it is doing because it is simply an economic process.

 

[2bfabian]

Buyers dictate value. Let's think about that. I disagree. He who holds the gold dictates the value. If by chance you live in Detroit I may agree, but if you have a nice place in paradise how are you going to have someone tell you what you have is worth less than what you think. If its yours then in order for some else to get it they must :nono1: pay your asking price not theirs. In the example that you gave yes many bought above there means but if you think them dropping there price is some how going to effect the market positively I for one strongly disagree.

 

[2bfabian]

Bobby your correct but my point is if the prices stop dropping the market will change