As we gear up for the “busy” season, what are we to expect? Will the summer take off and leave builders and the real estate market behind, or will the hot winds turn the market hot again?
Travel to the burbs and tree-lined streets are littered with multi-colored for-sale signs. Is it a sign (no pun intended) that burbanites are fed up with their commute and are looking for an escape clause, or is it that they are baby boomers whose kids are all grown up and they’re ready for their new life in Florida (or along the coast of North Carolina and in the mountains, where property values are still increasing dramatically)?
Existing homes and new home sales inside Atlanta City Limits and within a 5 mile radius thereof are still good with many agencies and builders still maintaining and/or exceeding last years goals. Coastal Communities and Mountain communities in areas other than Florida are still showing substantial sales totals even if they too, are off just a little bit.
So there are still willing and able buyers, both here in Atlanta and elsewhere. Does that come as a shock to Forum readers? Hopefully not. Just think, in the next 3 months you are going to make or break your year. The next three months will determine what the experts recap for success or failure in 2007 in the Atlanta Market.
The market is saturated with offers and incentives so much that the buyer knows they can “get a deal”. They’re not pulling the trigger because they are not looking for “a deal”, they are looking for the dream or still holding on to one (see below). You can offer all the incentives in the world, but if you do not sell your product as a dream, you cannot turn the prospect into a buyer.
Think about it… deals like a free furniture package or thousands of dollars off existing homes… everyone is doing that! Take your product or re-sale, re-visit the value in that product (not what it would have been if you sold it 2 years ago), stop waiting for the upswing because you are costing you and the seller money, realize the seller is not going to make the 20-30% profit they thought they would when they first bought the house, get back to selling and take the offer.
Don’t pitch the investment value, don’t pitch the great deal, don’t pitch the clout of the builder or agency… just sell the dream. That is why the coastal region and the mountain regions are so strong. The majority of the baby boomer’s dream is to retire in open air or on open waters and they will pay for that even if it means taking a hit on their home for sale. Adversely, the burbanite and builder who has had their home on the market for 120+ days’ dream is to sell their home at a huge profit but is not willing to admit they may lose a little less than expected. So they wait.
The longer the wait brings the continued decline in sales, which in turn brings the ho-hum summer. Sell the dream, stop holding on to what you thought would happen, and help someone else realize their dream by giving them theirs. Who knows, it might feel good to say the house is sold. (it may make the market’s numbers look better too)