3 Common Mistakes a Seller Makes

There are three typical mistakes a seller makes when hiring a Realtor to list their home for sale. Avoiding these can save you money and lots of hassle.

First and foremost, sellers often think they know more than the agent they are hiring. Here is a good tip; If this IS the case then find a true expert. The real pro's in real estate are highly engaged in the business and are watching trends daily if not hourly. Unless, as a seller, you are in real estate, chances are you are not as up to speed as you think.

Second, and this really goes with the first rule, if you don't trust your agent you are probably in for a rough selling season and have a greater chance of leaving money on the table. The really good agents, the pros, will not list your home for what you want. They will suggest a listing price that will work in the market and will be perfectly willing to NOT take the listing if you want more than it is really worth. The sellers who get trapped by the "this is what my house is worth" notion generally loose out big time.

Third, and this is the big one, listen to your agent. The selling process is complicated and there are other factors besides price that can cost you big bucks. Just focusing on price is short sighted and you may miss other variables in the contract.

In this market some buyers give a seller only one shot at the offer. You need to make the most of every opportunity you have and the pro's know how to make the best of every opportunity.

Underwater Mortgages

http://tinyurl.com/m7ftum

Most of the time I can agree with the WSJ and their respective authors' opinions as to the Real Estate market but with the above referenced article I take exception with Mr. Feldstein's take on the method in which we might stave off future foreclosures. In the article he suggests that the very people who are underwater with their current mortgage would somehow miraculously agree to the notion that the government will forgive a portion on their mortgage(not enough to make the bad situation an even break-even) and in exchange, the bank that holds your mortgage now has recourse against the borrower even if the borrower files for bankruptcy. Really? Who is going to stand in line for this ridiculous notion? Does Mr. Feldstein really believe that you would put yourself in this position because it will help everyone as he suggests? Let's be honest Mr. Feldstein; many of the problem loans that were generated that were "subprime" were not leant to people who were thinking of the common good. Those who find themselves severely upside down now due to a job loss are not thinking about the common good right now - they are thinking about how they can satisfy their family's "common good."

The problem stems from policy wonks who have little contact with the market, they wish to control, and their meddling into the free market system. The push to 'regulate' the masses into housing is what created our housing bubble and the FREE market is returning the level of home ownership back to 1985 levels.

The moral of the story is this; let the market work. There will be ups and downs. Interfere with the market and the ups and downs create more opportunities for a loss of our Freedom.

Remember GM?

The London Tea Room

The London Tea Room St. Louis MO

Lori and I are away in St. Louis for a conference and while we had a few minutes between sessions we wandered up Washington Street in Downtown St. Louis to discover this fantastic Tea Room. We have been tea lovers for the past 10 years and love this great Australian tea from Madura Tea Company. http://www.maduratea.com.au/ We especially like their Earl Grey blend. Well when we found this place we thought we would try their blend as well. WOW what a cuppa! Smooth, rich flavor in a great setting. We loved sitting outside with our steaming cup at a little marble topped table with a nice sandwich (those are great by the way) and a small buttery english shortbread. The cook knows his or her stuff that is for sure, because these little delights are the real deal! We enjoyed it so much that we have been back every lunch for the week. The englishwoman, who hosted us, is a real delight too. If you are in St. Louis, love tea, you must check this place out. It is worth the trip to find it.

Recovery Market?

http://tinyurl.com/mq5zn7 This link to the Wall Street Article mentions a home sellers dilema when pricing their home. The advice given is sound, from a professional's standpoint. When pricing your home one must really consider several factors that this article points out. First I would look at the what the competition is priced at and second, I would look at what the competition sold for. With the revised rules regarding appraisals, the price of a home is no longer what the seller is willing to sell for and what the buyer is willing to pay. The new third party to this equation is what is the appraiser willing to bless? Local experts are a valuable source of information, including appraisers.

Are we in a recovery market? I can't answer that question. But for starters Waukesha County lists 95 foreclosure sales are scheduled for the remaining days of August. I don't think we are in a recovery mode yet. Time will tell.