Flathead Valley Real Estate Blog

Let’s Think About our Expectations, a Little.

By Chris Fraser, 3-19-08

We have seen a lot of properties come on the market lately, at tremendously high price levels. Over the past several months we have begun to see these listing prices fall. A lot of people are asking me what’s going on with the market. I usually mention to them that if you are serious about selling, then check the facts your agent presents to you, ask a lot of questions, and it is always a good idea to interview more than one. But if sellers are expecting to throw out a high number just “to see what happens” in this market, I believe you are wasting your time.

People buy and sell in all markets; high times and low times respectively. Their rationale is not for me to question; my job is to determine a strategy to maximize their returns, and provide the best representation I can give. But, the market is correcting; we in the Flathead Valley lag behind national trends, and the national trend has been slowing for a while now.

When you see the large number of price reduced signs out there, and keep hearing about the bad real estate market, one must keep a few things in mind and under consideration. Prices and expectations have been inflated for a while, so when we see these price reductions on a massive scale, it’s because the values weren’t real in the first place. Sellers are selling property, but the expectations are a lot different in this market than previous ones. Many sellers are still making good gains compared to other markets and investment vehicles. Remember, we make money on investments, a little bit year after year over time. If you bought your house last year, made some improvements and are trying to sell for a big gain this year, well, I’m not sure what to tell you.

This concept of making money on our investments over time also applies to other investment vehicles, such as the stock market. Has anyone seen the numbers on the Dow lately? I know some stock analysts who predicted the Dow to be at 14,500 at year end, 2007! If you put your money in the stock market a year ago and sold yesterday, I’m not sure how much gain you would have had. But, if you put your money in the stock market 10 years ago or 5 years ago, chances are if you sold yesterday, you would have had some gains. The same is true with real estate investing.

However, when you interview your agent and they tell you that based on recent, sold, good comparable data, your property is worth $200,000; it is probably close to value. If you want to sell your $200,000 property for $350,000 right now, then keep in mind the challenge you have in front of you, in any market.

We have had a few great years as the economy expanded, and as with many things, the economy runs in cycles. Also, to complicate matters we have a major presidential election this year, and as you know there are a lot of pressures out there concerning our day to day stuff. Expectations and good information are the key, this is a great market to buy, and for some sellers to sell. It’s all about your perspective, your expectations and what’s important to you. [End of article]

Comment By Craig, 3-29-08

More BS from the Realtors. A couple years ago they were all saying “oh, it’s a great time to buy...it’s different this time...you will make a killing”. Now, you’re preaching that “now is a great time to buy...these cycles happen all the time...you can’t expect quick returns”. Realtors and Mortgage Brokers have screwed plenty of people in the past few years, but I do find some solace in the irony that the people who sold to uneducated buyers and created this housing mess will soon find themselves homeless.

Final note: I hold the idiots who bought homes they couldn’t afford equally accountable and I think they deserve what is coming to them as well.

Comment By Crystal L. Cox, 4-05-08

It is suggested to Check the Facts your agents give you. How in the world are you going to do this? The Association of Realtors does not even check the facts. The appraisors and the Lenders do not check the facts, how in the world is a Seller suppose to realistically check the facts ?

There still is a Good Market for you to Sell your Real Estate if you or your Real Estate Agents Really gets Internet marketing. I have seen so many high end listings in the Kalispell area with very little photos, bad websites, and no real understanding of Internet Marketing, which is where the Buyers are Looking.

Why are SELLERS still listing with people who are not getting their Kalispell Real Estate found at the Top of the Search Engines, it makes no sense.

That is why you, the Sellers of the Flathead Valley are having to lower your prices. It is because your Realtor does not know how to market your real estate for sale in a new Internet Savvy Market.

Don’t Reduce your Price. Bump up your Internet Exposure and the Buyer will Come.

Real Estate and the Stock Market is Cyclical Yes but Recreational Real Estate such as Northwest Montana Offers does not have to see a decline in value. Buyers are still looking, people still have money. I have buyers who have wanted a particular property and did not care what state necessarily. They find my website on my real estate listing and pick Northwest Montana instead of Say Colorado, this means to you the real estate Seller that with GOOD internet marketing you will not have to compete with the thousand of homes for sale in Northwest Montana and you may just get a buyer that has no problem with your higher price because it was actually cheaper than where they were looking.

NO ONE can tell you what you home will sell for. If you build a website and market online you will get noticed by more buyers than 99% of the Realtors in the Flathead Valley. The Local Realtors are not really marketing your real estate online effectively. You WILL get more money by marketing your real estate online yourself and your real estate for sale will stand out.

Good Information is ALMOST impossible to get from a Realtor. It’s not that they all lie but they don’t do their homework or they believe what a Seller or an Appraisor tells them.

Most Appraisers ask me “What do you need it to come in at”. Everybody Wins, Well Except you.

SOLD Data and Real Estate Comparables Mean Nothing. NO ONE checks to see if the Realtors enter the right SOLD price. Comparable can be found at what ever price you need them to be.

Appraisals are Opinion and not Fact.

Go Ahead and Throw Out a High Number, Market Online and I guarantee you will get more interested buyers than 99 percent of the Realtors in the Flathead Valley. Why ?

Because they are not buying search terms in the search engines that get your real estate found. You can do this yourself and outshine most all real estate for sale that competes with yours.

Folks, please don’t take advice from a NEW Realtor. Dig Deeper and Find Out your Own Truth. You and Your Family deserve your highest dollar with your least liability.

Crystal L. Cox
Broker Owner
Ten Lakes Realty

Comment By jennifer, 4-23-08

Great Blog Chris, thanks for the truthful, forward thinking info.

“Problems cannot be solved by the level of awarness that created them” Einstein

This article was printed from flatheadbeacon.com at the following URL: http://www.flatheadbeacon.com/articles/article/lets_think_about_our_expectations_a_little/2762/