Wednesday, September 17, 2008

You want HOW MUCH for this House?

Attention all sellers...........REAL ESTATE IS AREA SPECIFIC!

We are so lucky here in the Fort Worth/Dallas, especially Tarrant County area of our great state of Texas. We never really had the runaway price boom, so we are also not having the bottom drop out of our market to the extent that some areas have had.

The other side of the coin is that with our area being a high growth area, we have had some challenged subdivisions making values area specific. Buyers always buy the home that they feel an emotional attachment towards. That is how they make their decision. Fast forward to 18 months out and a job change which is requiring a move....and not a dollar of corporate help for their move. Picture this: Their home is only 3 years old and their subdivison is 5 years old and phase 6 and phase 7 are now being built ...with 3 or 4 more phases left to build.

Ring, ring,...hello DiAnne. Our friend told us that when we got ready to sell our new Buildmore Homes, home, that you would be the agent who can help us. Of course, I am delighted to have the referral from one of my past clients. However, when I pull the stats of September 2008 and see that 75% of the sales in this new prospective seller's subdivision were new builds...i.e. purchased from the builder, BuildMore Homes, INc., I know that my new client is in trouble.

I have an appointment for 6:30 and while I really want to do a great job for them, I know that I must show them the situation. The real truth is that as long as new homes are available in their subdivision, they cannot price their home to make any money! If they price for what the house should be worth, they are just helping to sell their competition. In plain terms, who do you think will pay $180,000 for the same plan than has had 3 years of living in it as can be bought brand new two blocks over for $175,900 and the appliances and wood blinds will be included.

This concept is so hard for the seller because he believes that he has been "gaining equity" and increasing in his market price. After all, homes are supposed to be increase in value over time. So in my head, while I am showing my listing client what the market is telling us, I am also sensitive to the feelings that these buyers have while hearing this truth.

I have found that there are buyers who only buy new homes, and buyers who only buy homes in established areas. It is a buyer profile. However, as a protective agent for my clients, I always try to show them that it is highly likely that unless they can stay in their newly built home for at least 5 to 7 years, they may not make a big profit on their home sale.

...........So you can see why..........I am thinking sometimes, "You want how much? for this home?"!

To get more information about the Fort Worth/Tarrant County real estate market, I can be contacted from my website: