Ardell, I am so touched that you would think of me (tears well up in eyes).

Loved your blog! I can see right through to you at first glance. Fabulous! and I like what I see as well…

So to that end, I completely AGREE that a property is worth what a buyer says it’s worth. That’s very true in a buyer’s market. But qualifying what really is a buyer’s market is really important. Even within my own market of 500,000, which is not that big compared to many other American markets, there are micro markets with totally different numbers. A big air force relo neighborhood with a $260,000 mean price is showing market time of 3.5 months when the rest of that MLS area is 7.9 months and the city is 9.8 months. So the exhaustive, phonebook evaluation shows all of that data and then allows the consumer to make both an educated pricing decision, but also one that is in line with their needs.

Ardell, I really “enjoy” (no sarcasm, really!) your teaching on the word “like”. It’s a terribly important delineation for the agents to separate their preferences from the consumers and allow their analytical skills to be understood as professional benefits.

I promote the use of an appraiser… of course as it is natural as an appraiser, for me to do so. However there are many reasons for this ideology one of which is to remove the dilemma while providing additional services for the client. This works on both sides of the situation (seller/buyer agents). Of course you can relate to the debate I encounter as you have touched base on it in your post… what can they “get it to” over “what is best” price.

I think that you are very close to the amount of time that it takes a person to get a good handle on evaluating the market and I would like encourage you to continue as it makes the transaction smoother for all parties when the real estate agent, client and others understand the process including pricing.

There is one thing that also must be taken into account and that is concessions. I also agree that comparables are what has sold and that active or competing properties need to be taken into account for with in the direct market. There are several factors including your mention of condition and/or appeal.

I have no argument with your post and am glad to see you post on this subject… Hats off to you!

Please Keep Up The Great Work!

I don’t like making predictions, but I think February will probably be our last month where the YOY comparisons are slightly favorable or about equal. I don’t think we’re going to get the same crazy level of appreciation that we had last year (e.g. the median in March won’t jump $25,000, and then April $10,000 more and then May $5,000 more.)

That said, there are a lot of types of properties in a number of areas where you didn’t see that type of runup on a percentage basis. So for those there’d be no need to adjust (assuming you were going to go that far back for some reason).

Stated differently, I wouldn’t necessarily adjust a comp from July just because it was from July.

I posted that Tam O’Shanter post for you. See? I was right this time last year. That neighborhood did go up about the same amount as it did in the previous year. I didn’t search for a positive story, I simply went to where my last closing was.

I’ll do more of these throughout the year as a counter-balance to the macro King County stats. Micro research in areas I work will be a good exercise in Why do I only or at least mostly work in only the best of neighborhoods As I said, “good advices” in a changing market. And that means knowing how to pick them, and not relying on market influences, but a keen sense of what and where.

With a little tlc, I am fairly certain I could sell that property up there for well more than my buyers paid for it, should they ever call me back to sell it. I liked it enough to buy it myself I may have to go find me one just like it if and when my house sells. Not on the market yet. No pink trees in bloom yet and I’m not nearly ready.

Are you sure you aren’t me? LOL! I agree with all of it…100%

I like your philosophy of your ‘Yes, Maybe, NO homes”, and that there are just some homes that you don’t want your clients to buy. I feel the same way.

I spent today with relocating buyers looking at homes. As we drove up to the first house (which was his top choice based on the MLS listings), I told them that they needed to pass on the house no matter how nice it was inside. It is on the corner of a 4 lane busy street, and it was angled out towards the busy street. The buyer commented that it might be worth it if you could get it for $50,000 less than the similar homes in the subdivision, and I told him that I thought he was wrong. Someday, he’ll want to sell that house, and he doesn’t want to be in a position of it taking a year to sell…while he and his family is living in temporary housing in another city because he had to move for a job.

Somebody will eventually buy homes that are on busy streets or have power line towers behind them, but it won’t be one of my clients.

Instead, these clients settled on two other homes that are both rehabs with the same floor plan. Mr. Buyer likes the one with the fabulous finished basement that includes a bedroom and bathroom better. But, that house has only a basement laundry and the yard is 100% wooded. The other house also has a finished basement, but it doesn’t have the bedroom/bathroom. BUT, it does have a 1st floor laundry room and a yard that not only backs to dense woods, but also has a grassy area that would be useable for pets or playsets. There is no doubt in my mind which is the better house, and I think he is coming around. Someday they will want to sell, and they’ll want to have a house that has the best features around.

Every time I work with a buyer, resale problems are part of every discussion. Just about everyone will eventually need to sell, and there will always be competition that doesn’t have the HUGE resale issues. Working for a buyer’s best interests means that you focus on what can’t be changed (or changed without big expense). Location, floor plan, and lot placement/size just can’t be changed.

As a buyer’s agent, I want my clients to get a home for a good price, but I also want them to get a good home.

I think “ridiculing” is in the eye of the beholder Last year I felt that the market, as in prices, would go up in the 2007 “season”. Which it did BTW. This year I feel the market will go down in the 2008 “season” by about the same amount it went up in 2007. How much is that? It’s kind of a reverse pattern. The ones that went up the most will go down the least. The ones that went up the least will go down the most.

From my perspective, calling each year with some forward projection is warranted, and that is what I do. Saying in 2004 or earlier that “some day” it is going to go down, just doesn’t make sense to me and doesn’t make someone right when that eventually happens.

Every agent has to keep their eye on the recent past and the predictable future.

I’m glad you are a fan of the new me. It is true that the more I blog the more I change. Getting on the same page with consumers is a difficult process.

Throwing up the kool-aid is a lot less pleasant than drinking it