Thursday, January 11, 2007

Real Estate Profitability

I'm really optimistic about 2007. I think that a lot of the buyers that were holding back around the holidays are starting to re-enter the market. Mortgage applications are up in my area and prices seem to have stabilized. Of course it is more important now to price a home right the first time. The homes that are priced right are percieved as the cream of the crop and outsell their competition. I work with my sellers to achieve the highest realistic price for their home, and I impress upon them that it's the market that sets their price, not their need or greed.
Oh, and another thing. I used to counter low ball offers in a sarcastic tone. If they came in at $20K below the asking price, I would counter back at $20K over the asking price, and let the selling agent know that my sellers were deeply insulted. Since our market has cooled since 2005, I have a different tone. I look at any offer and think, "well,here's a starting point, let's put this together". That strategy has paid off for me. Sometimes you just have to roll with the punches.

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