SW Missouri Real Estate News

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This Isn't Back To The Future! Why You Can't Sell Your Home At 2005 Prices.

Wouldn’t it be nice if you could hop in your De Lorean like in Back to the Future and go back in time to just before the real estate bubble? You could set the time machine a few months before the hot market and buy up a few choice properties and then just sit back and wait. Then you could sell them all at a hefty profit and then return to present day. Now with cash in hand you could buy more property at deeply discounted prices. Time Machine

Unfortunately this isn’t Back to the Future and you aren’t going to sell your home today at 2005 prices.  The real estate market is what it is and if you list your home at 2005 prices you aren’t going to fool anyone. Your home is competing against foreclosures, short sales, and other listings that are more realistically priced.  So what can you to do?

There is a silver lining to all this. You can sell your current home at a loss and then turn around and buy a more expensive home which is also discounted by the slower real estate market and gain on the other end. In other words, if you sell your home now it’s a great opportunity to then purchase your dream home at a lower price than you ever imagined.  With historically low interest rates it’s a great opportunity.  

If you do run across a time-machine, let me know. I’d like to go back in time and buy some stock in Wal-Mart, Apple, and Google before they became so successful!

About The Authors:  Betty Knowles is a full-time REALTOR® with Coldwell Banker Vanguard REALTORS® in Springfield, MO and proudly serves on the board of the Greater Springfield Board of REALTORS®.  She also served as President of Women’s Council Of REALTORS® in Southwest Missouri.  Betty’s genuine passion is helping people buy and sell homes in Springfield, Ozark, Nixa, and surrounding communities.  

John Knowles is likewise a full-time REALTOR® with Coldwell Banker Vanguard and a member of the Greater Springfield Board of REALTORS®. A self-proclaimed computer geek, John is talented at developing real estate websites, videos, photography, blogs, search engine optimization and other technical skills essential to marketing and selling real estate in Springfield MO.

Together this dynamic team makes up TeamKnowles REALTORS®, Spouses Selling Houses!  They are dedicated to doing what it takes to sell your home in the greater Springfield real estate market, or help you purchase a home that fits your particular needs. Give TeamKnowles a call today; you’ll be glad you did!

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Comment balloon 22 commentsBetty Knowles • September 29 2011 01:12PM

Comments

I love the concept and you've made me smile.  What's frustrating today is that many people are trying to sell the big home to buy the small one and, in our area, that's really problematic with less chance for success.  But we try!!

Posted by Beverly Femia, Broker Realtor Stager - Greater Wilmington, NC Are (BlueCoast Realty Corporation) about 7 years ago

With real estate being so local I would say many area's are further back in time than 2005.   I can't imagine as many sellers these days not realizing how tough things are, I'm sure there will always be someone who thinks it doesn't apply to them

Posted by Bob Jakowinicz, Michigan Real Estate Agent-- MI RE Adventures (National Realty Centers Livonia--Bob Jakowinicz) about 7 years ago

"is what it is" - If only our sellers would realize this. Great entertaining blog - thanks for sharing, got a nice laugh in for the day!

Posted by David Santangelo, Search Palm Beach County Florida Homes for Sale (www.aceluxuryhomes.com - Keller Williams Realty) about 7 years ago

I think around here people would like to go back to 2006 and sell. That seems like when it was the peak. Pretty amazing to think that almost 6 years in a home gets you no equity (or a loss). Cute post.

Posted by Kristi DeFazio, Colorado Springs Rea lEstate 719-459-5468 (RE/MAX Advantage) about 7 years ago

Good analogy with your post - and entertaining to boot. Your logic sounds good, but sellers have a hard time selling a home they think is worth more at a loss...emotions are running high where that topic is concerned! Hindsight is wonderful isn't it?!

Posted by Charlie Dresen, Steamboat Springs, CO e-Pro (Steamboat Sotheby's International Realty) about 7 years ago

That's exactly right - I am always telling sellers that while they might be selling for lower than they wish, they can also attain some level of parity by buying something else that is discounted.  Just common sense.

Posted by Margaret Goss, Chicago's North Shore & Winnetka Real Estate (Baird & Warner Real Estate) about 7 years ago

High-end homes have taken a much bigger hit than average homes so yes, they could definitely upgrade.

 

Posted by Bryan Robertson, Broker, Author, Speaker (Intero Real Estate) about 7 years ago
Hi - love your post. Short and to the point! The market is what it is and you need to price your home according to today's market realities in order to have a successful sale. If sellers AR then moving into another soft market they will be able to mitigate their loss by purchasing their next home at a much more affordable price than a few years ago. Not every seller has the luxury of taking a beating and then buying again whether the prices are lower or not. Sometimes they need to rent and wait while they build up enough savings for a downpayment. If this is something they don't want to do and there is no pressing need to sell the best course would be for them to hold off on listing their home and wait until their situation improves. Talking to a financial advisor before making any types of big decisions like this is always a good idea.
Posted by Coleen DeGroff, Haile Plantation Real Estate - Gainesville FL (eXp Realty) about 7 years ago

Excellent post! I love how you describe this...it makes it accessible to the future seller.

Posted by Deb McNeill, Fort Worth Real Estate (Flying M Team Small World Realty Fort Worth, Tx) about 7 years ago

Hey don't forget about the rates going down to ?? Supposed to go lower which just can't be beat.

Posted by Lyn Sims, Schaumburg IL Real Estate (RE/MAX Suburban) about 7 years ago

Betty & John, 

A time machine would be awesome for investments.  However, with the low prices and low interest rates, I think there will be a number of folks who in 2013, 2014 & 2015 will WISH they could go back to our current home prices and interest rates and buy again!

It's a great opportunity.  

All the best, Michelle

Posted by Michelle Francis, Realtor, Buckhead Atlanta Homes for Sale & Lease (Tim Francis Realty LLC) about 7 years ago

I think I would like to go back to that time just to find out how awesome it was being a Realtor(r) back then :)!  Apparently houses sold with no problem back then.

Posted by Brenda Mullen, Your San Antonio TX Real Estate Agent!! (RE/MAX Access) about 7 years ago

Beverly, downsizing in this market is certainly a challenge!

Bob, local it is. Actually our area hasn't been hurt nearly as some areas.

David, thanks for the compliment! 

Kristi, wishful thinking indeed!

Charlie, like they say, hindsight is 20-20.

Margaret, it doesn't work for everyone but its a possibility for others. 

Bryan, hi-end homes have definitely taken the big hit.

Coleen, I agree many people need to hold off until their situation or the market improves. 

Deb, sellers need to know what is happening in their own area, not across the country.

Lyn, can rates go any lower?!

Michelle, I agree. In a few years a lot of people will wish they had bought now. 

Brenda, put a sign out and it sells!

Posted by Betty Knowles, TeamKnowles REALTORS® - Springfield MO Real Estate (Coldwell Banker Vanguard - www.teamknowles.com) about 7 years ago

What a wonderful blog with a real message!  thanks for treating this timely topic so well!

Posted by Lisa Wetzel, CDPE, SFR carsonvalleyland.com (RE/MAX Realty Affiliates) about 7 years ago

Hi Betty and John,

Generally agree with your post, but there are a few markets in metro Atlanta where the housing issues have not had as great an impact and sellers are seeing decent purchase prices.  Real estate is so local. Anyways very entertaining!  Thanks and continued success to you!

Posted by Jordon Wheeler, J W Group Real Estate Sales and Service (The Jordon Wheeler Group) about 7 years ago

Nifty post, memorable line!  I can't wait to use it in an explanation.  This subject is in dire need of levity!

Posted by Marge Piwowarski, Phoenix AZ Horse Property, LLC (Phoenix AZ Horse Property) about 7 years ago

I would go back to 2006 and join AR when it started that year. Then I wouldn't be paying for it now.LOL.

Posted by Sandy Acevedo, RE/MAX Masters, Inland Empire Homes for Sale (951-290-8588) about 7 years ago
What a great title and great way to communicate this concept. Just reblogged!
Posted by Cheryl Ritchie, Southern Maryland 301-980-7566 (RE/MAX Leading Edge www.GoldenResults.com) about 7 years ago

Betty, yes, the market is what it is! So to get more sold sign one can go to 2005 or 2001 or even in the future 2015 perhaps. The house should get sold - that's where it should be priced!

Posted by Praful Thakkar, Andover, MA: Andover Luxury Homes For Sale (LAER Realty Partners) about 7 years ago

Generally, not always, sellers like to attach a price to the emotion of the house.  I remind them  that it is only an emotional interest to them .  The sellers aren't interested so price it realistically to sell.

 

Patricia Aulson/ Seacoast NH & ME REALTOR

Posted by Patricia Aulson, Realtor - Portsmouth NH Homes-Hampton NH Homes (BERKSHIRE HATHAWAY HOME SERVICES Verani Realty NH Real Estate ) about 7 years ago

There are two economic philosophies that come into play.  Buyers are capitalists and want to own a home for what it's worth or a little less.  Sellers are communists and want to sell their home for what they need.  I like the time machine concept, and have recently suggested to an unrealistic seller that they call me in 2005.

Posted by Mike Carlier, More opinions than you want to hear about. about 7 years ago

Recent sellers of a lovely wine country home did just what you outlined. They took a big hit on their primary residence, but found a buying opportunity in Lake Havasu that let them feel like their transaction evened out. They got less, but they paid less, too. It all worked out fine for everyone.

Mike- I wish I would have come up with that comment about calling me in 2005. I know I'll find a time to use it.

Posted by Dave Roberts (Healdsburg Sotheby's International Realty) about 7 years ago

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