I can understand your frustration. I am a realtor and also have my own home for sale. In a declining market price and condition will rival location in determining what sells when. I have had to lower my price based on feedback from the market.
Many of my sellers will not get out in front of price declines, but choose to trail the market. With a limited number of buyers, say 3 looking at your neighborhood where 10 might be for sale, the competition is stiff. Buyers want a steal today. Many of my buyers keep waiting for further price delines and they have been rewarded so far. This becomes self fulfilling if everyone is waiting.
There are many reasons for the real estate bubble. Government interference thru social engineering, artificially low interest rates from the Fed, lax underwriting standards. The biggest was when Fannie & Freddie disassociated the underwriting risk from the loan and bought or guaranteed any/all loans performance. The lenders will make 2% all day long if the risk is zero. Wall Street bundled them all up and sold them and kept the cash revolving. I am conveting to Libertarian now.
Live and Learn. Jon Tucker, RE/MAX 100, 443.538.4316
I realize you are frustrated. Join the crowd.
I would like to respond with two points:
"Bidding wars they perpetuated setting many of these valuations". We, the Realtors, had nothing to do the the bidding wars. Your Senate Finance Committee, head by Chuck Shumer and Chris Dodd, led the committee expand homeownership by relaxing the underwriting standards and forced lenders to accept loan applications from people who previously would not have qualified under the old standards.
Interestingly, Barney Frank, head of the house of representatives banking committee (who had jurisdiction over Fannie Mae), had a signficant other, Herb Moses, who worked for Fannie Mae in product initiatives from 1991-1998. He made millions in bonuses.
Also, when banks balked at making loans to people that had only "stated income, stated assets", guess what organization picketed the homes of bank presidents? ACORN. So when Obama's resume reads "community activist", one of their roles was to make sure that banks followed the relaxed guidlines passed down by congress or else....
By allowing more people access to homeownership, the people that became "entitled" to own a home were by and large people that would vote Democratic officials, who helped them "get their fair share". See the link below for details.
So, as Realtors, we applaud expanding home ownership, but only to qualified people. I cannot tell you how many people I talk to who say "Yeah, I got this home with stated income, stated asset, zero down. It's just a pain owning a home. I'm going back to renting".
It may be EVERYONE's problem, but the source of the problem lies with Chuck Schumer, Harry Reid, and Barney Frank. IMHO somebody should do time for having caused this mess.
The price, list post a sign and put on the MLS system of selling is broken and does not work.
Auctions have been regulated for over 2000 years; the word auction comes from the Latin â€˜Auctionariumâ€™ which was the designated place to conduct auctions by the Roman Empire.
Auctions have a proven track record of delivering results in good, bad or tepid markets. People donâ€™t â€œbuyâ€ property at auction; they â€œwinâ€ the property and are happy knowing they only paid one bid more than someone else was willing to pay for the property.
The National Association of Realtors and the National Auctioneers Association both predict that within the next 5-years one out of five properties will be sold at auction.
Take a look at the numbers; they really speak for themselves:
1.4 million Members of the National Association of Realtors sold about 5 million properties during 2008 or about 3 Â½ properties each or about 1 sale every 4 months. (If averaged)
5,000 Members of the National Auctioneers Association (with less than 350 holding the AARE designation) and there were over 1-million properties sold at auction during 2008, which spread equally would average about 200 each or 16 properties a month each.
Who would you want to sell your property in this market?
I really appreciate your frustration with this market. Some things we have control over somethings we don't. \
There are many reasons a home doesn't sell, only one of which is price. If there are any other homes in your area for sale, the best home at the right price is the one that will get a contract.
There are some things your agent should be doing to get your property noticed. They should know who to market the home to. Who is the most likely buyer for your property. They should be marketing to those buyers regularly.
There may also be things that can be done by you at little or no cost that make the house more appealing. Sometimes it a matter of taking away some of the personal items so buyers can see themselves in that home. Staging can help, or minor sprucing up to the exterior can help with first impressions. Buyers are focusing on whatever negatives they can in order to get the sellers to take a lower price. Unfortunately many buyers think a buyers market gives them all the leverage and sellers just have to take it.
GRI and CRS are additional and more advanced courses and I have nothing but respect for anyone who has completed them, but I think your comparision may be flawed..If this is your example of how the RE industry has stepped up training, then what % of agents have been certified as taking these courses?
Banks cant lend money on overvalued homes .
Home foreclosures based on many families lose of jobs could no longer afford live in their homes .