Long Island Real Estate Market: Quit Your Whining!
Attention Readers: This is a vent session. I'm going to share with you my personal insights about the general feelings I sense from others impacted by the current Long Island real estate market. During a "vent session", the golden rule is not to hold everything someone says against them, rather, you just "let'em vent." Thanks for your understanding.
Okay, so for fellow agents, I've got to point out a few things. We are all working with buyers who are really shoppers. They are shopping, plain and simple. They are taking you from house to house and even when you get that "feeling" like, "They are gonna love this house. This is it..." - what happens? They don't like it. Sigh...back to the drawing board...and a thought - "This market is crazy!"
You see, we as professionals (those of us that take this business very serious and understand it) realize that now is without a doubt, a fantastic time to buy. The old rule is, "Buy Low. Sell High." Well prices are low [and interest rates are still good]. But trying to convey that to "buyers"...or shall I say, "shoppers" is very difficult. For some reason, because we are "Salespeople", our word is suspect and we're only saying things to "get them to buy."
It's insane! I agree. But...quit your whining. I realized that the more I whined about working with shoppers, the less effective I was with moving them along to a successful crossing into homeownership. Whining about them is of no use and is simply not an effective strategy for conveying a mindset that is focused on one thing - helping them find a home.
Sellers. The number one phrase I hear from sellers is the following:
"...Yeah, the market's bad, but I'm not going to give my house away."
This statement is uttered by more sellers than I can count. If I had a quarter everytime I heard this, I would seriously have enough money to take a vacation in Italy...twice...for two months...each.
"I'm not going to give it away", coming from someone who (if they owned prior to 2001) experienced over 100% appreciation in 5 years.
Now here I could "whine" about how I "can't stand" hearing that statement. And a few months ago, I would probably have said that. But I'm not hear to whine about other peoples whining behaviors.
I like hearing it now because I delve right in and determine whether they're serious about selling or not. If they're not, I do not take the listing. Period. This saves me time and money. I also convey this, rather strongly, to the prospective seller. I tell them honestly, that I will not take their listing if it is priced too high (to even appraise for the number they want to ask).
My advice is always the same - "Quit your whining!" (Again remember the golden rule - this is a vent session). Being positive about what is good with a situation will yield better results. Thinking in the terms of "giving away" your home is not a winning attitude - it's a whining attitude that leads to increased frustration and despair.
If you lose money on it - then so be it. Move on. It's tough. It's stinks. You want to kick yourself...hard. The alternative is to not sell. Or think about it this way.
You bought it for $50,000 (let's just say you purchased in the early 80's). You refinanced and pulled money out to pay for your daughters wedding, fix up the house, pay off the boat, lend money to your son, redo the landscape, and go on a gigantic vacation overseas. So you turned your cash into...trash. Get over it.
Your home was worth $750,000 in the winter of 2005. And now, you can't get $499,000. You're sick to your stomach because you owe $400,000.
Now here's where I scratch my head and ask, "Yes, but didn't you take out all that money and GET THE MONEY?" Whether you spent it or not, you still received the benefits of your equity. And luckily, you're in a position where you can sell the property, pay a commission to a professional and put what's left in your pocket. You can also buy a house for less money, which is a trade off in equity.
Again, a whining attitude will get you to think about the negative. A winning attitude will help you realize that the market is what it is. Your decisions in the past have impacted your current place in this world. Rather than have X amount of equity, you're stuck with the fact that you spent your equity on other things and didn't plan on the economic slow down and real estate correction...and neither did your mortgage consultant, real estate agent, aunt, uncle, dad, mom, brother, sister, friend, politician, President Bush, President Clinton, Alan Greenspan, Citi Mortgage, Chase Bank, Wells Fargo, Deutche Bank, all the mortgage companies and banks that have gone under, and probably even God Himself!
So, don't beat yourself up. Don't blame others for your "misery".
Move forward. Quit your whining.
To all agents and sellers, realize that there are buyers out there or shoppers who will eventually become buyers. You have to focus on winning them over, because whining over them will not produce successful results.
Get over it. Move on. Life is too short. Oh and thanks for letting me vent! I hope my vent session helped you realize a thing or two about your situation.
For a comprehensive home value assessment, Click Here. I will be in touch within an hour.
(c) Copyright 2008 www.tommcgiveron.com
By Tom McGiveron
All good valid points. I have only one thing to add when dealing with 'shoppers' as you refer to the buyers: prices are down (check), cost of money is reasonable (check), and, careful now, inventory is also down (at least that is the case in my market). Some of these shoppers may start to lose out on houses they didn't act on so, act now!
I also get frustrated with sellers who get miffed their house isn't worth $850,000. But you only paid $560,000 for it a few years ago!
Hi Thomas,
As a former Manhattan born New Yorker, who moved out when I was 18 years old, New Yorkers love to complain!! In this case, the frustrated homeowners or buyers. LOL... They are always looking for the "next money making deal". Unfortunately, many homeowners only thought that their "largest expense" would only go up, so they borrowed again their equity! The World Market then hit them in the face. Everyone has been hit in the U.S. and Calgary is now being hit with some of the homes getting lowered, due to "too many homes" being built and not enough jobs to sustain them. In a few months, things will pick up again, once the home prices are equalized with the rest of the world. After all, homes only go up with supply & demand. At the moment, many jobs have gone overseas due to the extremely high wages most Americans and some Canadians are paid.
I believe after the election, if we pick the right Administrators (President & staff), we will take a good hard look, or should I saw a "rude awakening" at our economy and begin the process of fixing the damage done. Hopefully, we will revive our country...
;>)
I think next spring is going to be incredible.
The only major concern I have - and I think many others have - is the banking industry woes.
Here on Long Island - closing costs are OFF THE CHARTS. Now FHA is increasing needed money down for their first time home buyers AND - increasing the upfront MIP (from 1.5% to 3%).
At the end of the day - I am not going to let that scare me by any means. My business is pretty solid - definitely took a hit in May, June and July (when I lost ever single deal I had - and none due to my fault at all...honestly).
Anywayz, keep in touch!