Ozaukee & Washington County Real Estate

One of the first questions I ask every seller is, "Why are you selling?"

We all know the reasons are many -- job change, downsizing, upsizing, divorce. And many times I've heard the seller slip in, "But I don't have to sell..."

My goal as the listing agent is to get the house sold in the shortest amount of time possible, getting the seller the greatest amount of money possible. So when I hear, "I don't have to sell" as any part of the response to the "why are you selling" question, I have to ask myself, "Does the seller really have the same goal as I do?"

If the motivation to sell is not there 100%, feedback from showings, updates on the current market, and reports on overall activity mean nothing to the seller. And if that's the case, should I really be working with this seller? Probably not.

To be the most effective and efficient Realtor® I need to be, I have to focus my time and energies on the sellers who do share the same goal I have.

I know that in any market -- even with the challenges of today -- every house can be sold -- assuming that's really what every seller wants.

Regardless of the reason for selling your house, there has to be a commitment on your real estate agent's part, as well as yours, to get the job done. And in this market, it can be tough.

It can be humbling to hear what your house is worth today. It can create a sinking feeling to learn you probably won't get back what you paid for all those nice updates you made over the past couple of years. It can tear at your heart to find out you may have to bring cash to closing because you owe a bit more on the house than you'll get for it.           

But the bottom line is, do you want to sell your house or do you just want to list it?

If you truly want to sell your house, you must pay attention to and hear what the market is telling you. It is that simple, and perhaps that difficult.

What is the feedback you're receiving from private showings and open houses? Are you getting private showings? Are you getting visitors at open houses?

Remember that the buyer will determine the value of your house. It doesn't matter what you need or want to net from the sale. It does not matter.

Depending on the publication you read, it could be another couple of years at least before prices start to turn around - start. And depending on the report you read, prices could fall another few percentage points in the next year or so.

Bottom line is no one knows what will happen for sure in the housing market in the near or even distant future. What we do know is what we have now.

Interest rates, at the time of this writing, are at 4.375%. The supply of homes is great in nearly every price point in our area, and, as you know, prices are down.

So even if you would sell your house for less than you would like to, you would also be buying for less than you might expect to and at these historically low interest rates, which will ultimately cost you less over time.

Assume you are purchasing a $200,000 home, have 20% down payment, and the term of the loan is 30 years. With a 4.375% fixed interest rate, your monthly principle and interest payment would be about $798. If the interest rate were 6%, however, the monthly payment jumps to approximately $959. Over a 30 year period, that's a savings of nearly $58,000.

Is this your time to sell? Should you try to take advantage of these historically low interest rates?

Is it worth taking the risk and waiting to sell?

Just how committed are you to working with your real estate agent to get the job done?

Only one person can answer these questions for you. And that person is you.

I have to admit that there have been times when I've wanted to curse some of those home shows so many of us seem to be addicted to. Sometimes they have a way of making it look like selling a home is so easy. They can give the impression that a buyer makes a choice after seeing just three homes. And they have a way of convincing sellers to make every improvement they suggest, regardless of cost.

Sigh...if it were only that easy.

But over the past week, I met with two potential sellers who both said they know what work they need to do to prep their home for sale -- declutter, paint, replace damaged screens, reduce the number of personal photos, and CLEAN! They both observed, as we walked around the exterior, that they had to work on their gardens -- clean out the weeds, add new mulch where needed, and cut the lawn!

And both knew they should not put their homes on the market until these preparations were complete.

And how did they know all this? Both admitted, "I watch those home and garden shows."

They understand that you only get one chance to make a positive first impression. They both understand that you want potential buyers to envision themselves living in the house, not the current owners.

So I apologize to all the home and garden shows out there for the bad thoughts I've had. You've done good.

I recently wrote a brief post about the increase in sales in Ozaukee and Washington counties from February to March of this year. While this is encouraging news, by no means are we "out of the woods" yet. Short sales and foreclosures are still numerous, and inventory is still high. So if you currently have your house on the market or are considering selling, it is especially important in these times that you pay attention to what is happening in your specific market.

If you truly want to sell your home, stay positioned ahead of your competition. How do you do that? Work with your real estate agent.

I try to provide my sellers with regular updates on the activity we have (or have not) had on their house. This includes requests for private showings, phone inquiries, and open house visitors. They all have continuous access to an activity report that provides a summary of this information.

Pay attention to the feedback that's given at private showings and open houses. What do potential buyers like about the house? What don't they like? Are the dislikes things you can change or improve (for minimal cost)? Try as best you can to compare your house to your competition objectively and recognize what your house has that theirs doesn't and vice versa. Take note of how long your house has been on the market compared to other homes that are on the market and that recently sold.

If there have been several private showings, traffic through every open house, and high internet traffic but no offer, pay attention to that. If much of the feedback about the house has been positive, but still no offer, pay attention to that. On the flipside, if the overall activity has been sparse, pay attention to that. Recognize that the market can likely not handle the current list price.

One of the most difficult parts of my job is making "that" phone call. You know the one -- when we have to discuss a new strategy, a price adjustment. Providing an up-to-date market analysis is the best way to see on paper where your house is positioned in comparison to your competition. And it shows you what homes comparable to yours have recently sold for.

While there was a time when we could rely on properties that sold as long as a year ago, that is no longer the case. Prices have unfortunately declined at a pace that now makes it necessary to focus on solds from the past few months.

When you can see on paper how prices have declined, it can be a very tough pill to swallow. But if you are committed to selling your house, acknowledging that a price adjustment is probably needed is a necessary part of the home-selling process.

Your real estate agent is there to help you sift through all the information -- to help analyze all the data. Work together to sell your home, not your competition's.