Ozaukee & Washington County Real Estate: April 2010

A few days ago I wrote a post, I Know It's Going to Hurt, But What You Want or Need from the Sale of Your Home Doesn't Matter, which discussed pricing your house based on current market conditions and comparable homes, not on what you want or need to walk away with. 

It seems that a comment I'm hearing more and more these days, too, is a sort of disgust over the "realtor fees" that will be paid. I think I prefer to believe that most consumers simply don't know or understand how the commission is paid (i.e., only if we close) and what that fee pays for. I know before I got into the business I thought the agent got "all of that." But that's just not the case.

That fee pays for, among other things:

• MARKETING/ADVERTISING
• CLOSING DEPARTMENT PERSONNEL
• ACCOUNTING DEPARTMENT PERSONNEL
• PROFESSIONAL PHOTOGRAPHER
• SHOREWEST TV EXPOSURE
• ONLINE GUIDED TOUR
• 24-HOUR HOTLINE
• OFFICE SUPPORT STAFF
• SALES DIRECTOR
• SELLING AGENT
• SELLING BROKER
• LISTING AGENT
• LISTING BROKER

Several months ago I wrote another post, So What Do Realtors Do All Day, to help shed some light on the time each of us invests into each of our listings and the expenses we incur. It isn't intended to muster up some sympathy for the time and energy that's exerted to get a house sold; it's intended to help the general consumer understand that "that realtor fee" is, quite frankly, money well spent.

But just as what a house is listed for should not be based on what you "need or want" to net, neither should it be padded to cover what will be paid in commission.

I know this market is frustrating, and whether you admit it or not, humbling. But without the dedication and work of a professional Realtor(R) and all the people "behind the scenes," the process would be even more frustrating.

When you look at the overall picture, you'll see it is money well spent.

It seems like things are getting tougher and tougher in the world of real estate. More and more "for sales" are popping up, interest rates have creeped up a bit, the buyer tax credit is nearing its end, and short sales and foreclosures continue to spatter the inventory. And yet, it is still difficult for some to accept that no one is immune from the rippling effects of these conditions.

Those of us who are in the business of residential real estate sales hear it all the time. "I need to net this amount of money, so I need to price my house here." If only it worked that way. But it doesn't. It simply doesn't.

In this complicated market, prices continue to drop. In our area, we rarely see a home sell for its assessed value anymore, much less fair market value. So if a seller is selling within a couple of years of buying and has made minimal improvements, if any, chances are they will not be making a profit. No matter what is wanted or "needed" to net from the sale, the buyer will determine what the home's value is.

Remember that today's buyers are pretty savvy -- they know what you paid. They know what the assessed and fair market values are. They know what comparable homes in the neighborhood have sold for. And they know that home values have fallen over the past few years and unfortunately continue to do so.

If your goal really is to sell your house, you must price it appropriately. A buyer doesn't care how much you need or want to walk away with at the closing table. So price it to sell, not to sit.

It seems like there are a few days throughout the year that suggest opportunity for a "new beginning." New Year's Day. Our birthday. The first day of Spring.

The older I get the more sentimental I feel about where I am in my life versus where I want to be. Postings of life events and photographs by friends, family, co-workers, and customers on social networks have me longing for more both personally and professionally. And sometimes I wonder if my chance at those dreams and goals has passed.

But then a "new beginning" day comes along -- like yesterday, Easter Sunday, the happiest day in the Christian church. A day of renewed life and hope. And belief.

And so today has been a day of remembering and focusing on the final outcomes -- those goals I have set for myself. Though I don't necessarily see yet how each of these will be achieved, I have to believe I'll be shown the best way to get there.

And I have to believe my chance hasn't passed.