Realty Bites

If you’ve been paying attention, you already know my answer: it depends.

Prices are certainly lower than they were two years ago. In some cases, a lot lower. But that old adage still applies: Just because something has fallen in price doesn’t mean it’s cheap. In fact, I believe we have a long way to go before hitting bottom. It may take years for prices to recover. Whether you should buy depends on the answers to quite a few questions, including: 

• Are you upgrading from a less expensive home? If so, the longer you wait as prices fall, the more you’ll save on the house you buy than you’ll lose on the house you sell.
• Are you downsizing? Then the reverse is true. You’ll lose more on the house you sell than you’ll save on the house you buy. Take action as quickly as possible.
• Will you kick yourself if you miss the next real estate boom?
• Can you imagine yourself renting for a few years? (Hint: it’s what I decided to do when the market peaked.)
• Are you honestly willing to pay a fair market price for your home, or do you demand a bargain?
• Do you have a choice? Or is your employer/spouse/school the real decider-in-chief?

The truth is, buying a home isn’t the right choice for everyone. A good Realtor® will tell you when it isn’t. That’s a sure sign he cares more about helping you in the long term than about making sales in the near term, don’t you think?

And the answer is: it depends.

Clearly this is a difficult time to sell, with prices falling daily. I expect them to continue to fall for some time. Properties that are priced right, expertly marketed, and carefully shepherded to settlement will sell. Most likely they will sell for less than they would have two years ago. A lot less. Should you sell? Maybe. I don’t mean to be vague, but the answer isn’t the same for everyone. What you should do really depends on your particular situation. Some questions that affect the decision are:

• Are you selling because you want to buy a more expensive home? If so, the longer you wait as prices fall, the more you’ll save on the house you buy than you’ll lose on the house you sell.
• Are you downsizing? Then the reverse is true. You’ll lose more on the house you sell than you’ll save on the house you buy. Take action as quickly as possible.
• Can you afford to wait five years for prices to improve? Ten years?
• Can you make the numbers work by finding someone to rent your house?
• Are you honestly willing to accept a fair market price for your home, or do you demand top dollar?
• Do you have a choice? Or is your employer/spouse/school the real decider-in-chief?

I often advise my clients to stay put. It’s certainly not something you expect to hear from your garden variety Realtor®. But then, you didn’t think I was your garden variety Realtor®, did you?

Fact is, I see my job as helping people, not selling homes. Sound corny? OK. I can live with that.

Twenty years ago, when I was a tiny little Realtor®, my manager at Coldwell Banker thought it would be a good idea for me to suffer indignities. It would build character, she said. Carolyn sent me to sell homes in Baltimore’s worst neighborhoods. She had me work with the scariest customers. And she wanted me to make cold calls to drum up business.

The cold calls were by far the thing I objected to most. I’ve never liked pushy salespeople, and I didn’t want to become one. So, I did the other things. But to this day, I have not once picked up the phone to solicit business from strangers.

My low-key approach has served me well. More than 90% of my clients are referred by friends or relatives of theirs who have worked with me. I seldom advertise my business.

But when times are tough (now, for example), bringing in a few more clients makes me a happy Realtor®. So I decided to send out some postcards. It’s a kinder, gentler way to attract customers, in my opinion. They went out about a week ago. Here’s what they looked like.

What do you think? Would you mind receiving something like this in the mail? Would you be encouraged to call?

Leave your comments, and I’ll let you know what the response to the mailing was.