November 05, 2007

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Five Stages of Grieving Sellers The real estate market as a whole is still in its first stage of grieving—denial. Most are aware of the five stages of grieving; denial, anger, bargaining, depression and acceptance. Denial set in as sellers refused to comprehend that the market that they so came to enjoy—a seller's market—vanished. Some are coming to grips with their anger knowing they should have sold a year earlier, and only a minority of sellers are to the point of bargaining (as depressed as they are about it) with buyers and accepting lower prices for their homes. These are the homes buyers should be seeking out. Why aren't more sellers to the point of acceptance? It's simple human nature to not acknowledge you timed a market wrong. Each real estate market cycle is different. In an attempt to predict the market's outcome we rely on past experience and historical records. But understanding the similarities is as important as examining the differences. One has to look to 1990 to find home sales as low as today. Are these two cycles similar? Let's examine the differences. In 1990 the recession and the subsequent exodus of Bay Area jobs impacted home values as many sellers were forced to relocate when companies began downsizing. This sharp increase in inventory of available homes coupled with a recession, fewer jobs and decreasing consumer confidence led to a decline in the median home price. Today's Bay Area sellers are not in the dire position many homeowners found themselves in the 1990's....
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Full Service vs. Limited Service or Virtual Agents—Is There Room for Everyone? The short answer is of course yes. Different sellers have different needs and abilities and some may choose a full service model and others limited or no service at all-the choices have been there all along. Yet the arrival of virtual Internet brokers has spawned a new ideology of it's either "us or them". The very survival of limited service or virtual Internet brokers relies on two things: The first is they are able to convince everyone that paying a 6% compensation is the only alternative to their "discount" model, and the second is that they must convince their prospects that the minimum service they provide is all that is needed to sell a home; and everything else which a full service agent does is a waste of their time and your money. These assertions that they need you to believe are false. Frankly; it's a bit surprising that the Department of Justice has not sought sanctions against this type of misinformation when the average real estate commission across the country closer to 5.1%. One of the most misleading impressions that limited or virtual companies imply is that full service agents and discount agents are mutually exclusive-they aren't. The second scenario is one which needs more discussion. The premise that a limited service or on-line virtual broker can sell your home is not as questionable as the issue of for how much? Any homeowner wishing to "sell" their home could market it considerably below market value and so long as...

Drew Morgan

Sponsored by Drew & Christine Morgan"Helping People Make Good Decisions"smReal Estate Sales and ConsultingCarlmont Associates

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