April 29, 2006

THE REAL (ESTATE) STORY
By Larry Underhill

POINT OF CLARIFICATION: Last week I observed that the local real estate market is still flourishing, although the market has changed dramatically from the way it was one short year ago. Today, I want to make sure I haven’t left you with the wrong impression: This is a PRICE-DRIVEN MARKET. Translation: If your listed property is overpriced, you’re just helping the other guy’s property to sell.

IT’S TRUE that homes are still selling well, but only if they’re PRICED well. Inventory of listed homes and condos for Lodi alone just edged over the 300 mark again (Inventory was hovering in the 85- to 90-range a year ago). Buyers are overwhelmed with choices. If you want to stand out from the crowd, the best way to do it is by pricing your property aggressively.

ILLUSION NUMBER ONE: “I want to keep the price high and invite people to bring me an offer.” In this market, that’s the kiss of death. While you’re waiting for that rare person who is willing to go to the effort to make a lower offer, your properly-priced competition is negotiating with serious Buyers. On top of that, the price platform is falling away under your feet. Prices are headed down, not at free-fall speed, but in a slow steady slide.

ILLUSION NUMBER TWO: “If I price my property aggressively, people will still try to grind me down on price.” Reality: If you’re priced aggressively, you’re in a STRONGER position because you’re likely to attract the serious Buyers quickly (possibly even multiple Buyers if you’re priced right). If somebody does try to ‘steal” your home, at least you have an offer to look at! You can always make a counter offer (or reject the offer outright if it’s exceedingly stupid). Better than twisting in the wind week after week waiting for someone to “make an offer”.

ILLUSION NUMBER THREE: “My (overpriced) home would sell if I had (Fill in the blank: Fancier ads, more Open Houses, etc.). Reality: Refer to Paragraph One. It’s a PRICE-DRIVEN MARKET. If you’re in the Multiple Listing System, you’re exposed to over 25,000 Realtors from Sacramento to Tracy to Pleasanton to Turlock. If your property isn’t selling, it’s NOT due to lack of exposure. It’s the “P-Word”.

THANKS for indulging me. That little rant was refreshing. One thing I promise every client is the truth. You can find someone who will tell you whatever you want to hear (In the business we call this “buying a listing”), but I specialize in the truth.

JUST LISTED: 253 Hartford Drive in Lodi! Nearly 1500 square feet of charm. Built in 2000. These original owners have poured a ton of money into this home! Laminate flooring throughout the common areas! Spacious covered backyard patio running the entire length of the house! Tasteful landscaping front and back with a variety of fruit trees (nice roses, too!). All this and more for $419,950! Call me for a private showing.

ASK ME about the NEW ROOF (with full-price offer) coming soon to my duplex listing at 2347 Arvilla Court in Lodi! Gotta go. Another listing appointment. Have a great week! See you next Sat.

Statesman Realty, Lodi, CA

(209) 333-2380

1-800-407-SOLD (7653)

www.LarrySellsLodi.com

www.larryunderhill.com

Email: Larry@LarryUnderhill.com