Monday, February 18, 2008

I just read an interesting article in the latest issue of COMMONWEALTH magazine (no link available; e-mail me for more information). Steve Harney's article addresses the obstacles real estate agents are currently facing with regards to sellers' expectations. Sellers have to come to terms with:

1) increased inventory (buyers have more choices and negotiating room)

2) increased mortgage rates (because banks are nervous, buyers have less buying power)

3) increased mortgage restrictions (more buyers are being disqualified and need a higher down payment)

4) increased vacancy rates (investors are selling their empty homes at cut rates, which hurts the sellers in the same neighborhood)

5) increased foreclosures (as Harney says, "bank-owned properties drive prices down" for the entire neighborhood).

These factors simply cannot be ignored; Harney says that some agents, acting out of fear that they won't make sales, will tell their clients what they want to hear to get the listing. I'm busy enough without generating false expectations.

posted by Inessa Telefus @ 8:07 PM