You know, I was just chatting with Tom Brokaw last weekend
… OK, so that’s a little exaggeration. He gave the commencement
address at Stanford and as he processed out with the current and
former trustees (my sister Mary is one) I said,
”
That was a great speech,
”
and he replied,
”
Thank you.
”
Anyway, during his speech he said
”
… it will do us little good to wire the world if we
short-circuit our souls.
”
I thought that was a profound and true thought.
You know, I was just chatting with Tom Brokaw last weekend … OK, so that’s a little exaggeration. He gave the commencement address at Stanford and as he processed out with the current and former trustees (my sister Mary is one) I said, “That was a great speech,” and he replied, “Thank you.” Anyway, during his speech he said “… it will do us little good to wire the world if we short-circuit our souls.” I thought that was a profound and true thought.
Everyone: Get up from the keyboards and screens and get out and do something in the world.
The other thought-provoking quote I came away with was one from Adlai Stevenson. His words were addressed during a much-earlier time to a different generation of graduates but they still hold true: “Your days are short here; this is the last of your springs. And now in the serenity and quiet of this lovely place, touch the depths of truth, feel the hem of Heaven. You will go away with old, good friends. And don’t forget when you leave why you came.”
Down at the farm it was a great day of blue skies, warm sunshine, nostalgia and tears, hope and smiles, good-byes and bright futures. I am very proud of Emily Claire Harnden, who graduated Phi Beta Kappa in human biology.
But to the business of buying and selling homes, let’s use that wired world to look at what’s happened in real estate this week.
Whoa, doggies! Lots of activity in a traditionally slow time … graduation and Father’s Day. In San Benito County the inventory of available homes has shot up to 321. However, we had 14 accept contracts. Another 12 closed escrow. Despite this, 11 potential sellers removed their properties from the market. In South Santa Clara County, the inventory is 479. We had 33 accepted contracts and 20 sold homes but still 39 sellers chose to leave the market.
What does this mean? I suppose I should come up with something as profound as Brokaw and Stevenson. Let’s see. Oh, I’ve got it. “It does you little good to look on the Internet without the soul of a trusted adviser with you. Go with true agents and don’t lose sight of your goals.”
What we’re seeing is more balance in the market. For the longest time, people were afraid to sell their homes. They were afraid they wouldn’t find a good replacement home, and afraid that the price would jettison after they sold and they’d regret it forever.
Suddenly the market has softened, and interest rates have increased. Those who want to move out of state have decided this is the time. Fears of the bubble burst have mostly subsided, but the promise of double-digit return on a real estate investment is probably done for now.
Also for buyers looking to move up the softness of the market means that even if they sell for somewhat less than their greatest expectations, their purchase will have the same softness. Let’s say your home is worth $600,000. You price it at $590,000 in order to get it sold quickly. You’re buying a house worth $750,000. The sellers have priced theirs at $725,000 to sell quickly. You come out proportionally better off for the soft market.
And for sellers: It’s important to remember that if you bought your house in 2001 for $600,000 and you believe it is worth a $1 million, it’s not a disaster to sell it for $900,000. You’ve still made $60K a year for doing nothing but enjoying your home. Take pleasure in how blessed you are to have had that happen, and don’t cry in your beer over the “missing” $100,000. As Adlai said, “Go away with good, old friends. And don’t forget when you leave why you came.”
I’ve mentioned this before but it bears repeating: I’m seeing some agent-switching going on. Do this with care. If you don’t like the job the agent is doing, talk to the manager at that office. Chances are your agent is providing you with all the services possible. You want to look again at the pricing of your home and how it shows. You’ll want to review the activity of your agent’s marketing. But you’re going to have to be patient.
Right now buyers are looking for value. How do they measure that? They look at the size and location of the house, and what amenities it has. Then they compare those to the rest of the houses (and there are plenty) they have to chose from. Want your home sold? Be the best looking house in the area for the same price. Don’t think because you have a nicer back yard you can ask $10,000 more than your neighbor. Ask the same as your neighbor and be grateful any buyer with a grain of sense will chose your home first. You’ll be the one with the sold sign and the cash in your bank account.
And as Adlai and Tom would both say, “Be kind to your Realtor.”
