Friday, September 07, 2007

37 Months Inventory

I love the Inland Empire. The name, the weather. Classic California hype. Now everybody's favorite Realtormadam Leslie Appleton-Young is giving the IE Real Estaters some advice. Get this; refuse to list some homes. "Sex"ceprts from the Press Enterprise:
"The best thing you as a real estate professional can do in this market is to encourage sellers who are not serious about selling their homes not to list. Don't take a listing from someone on a hope," Leslie Appleton-Young told a group of Inland mortgage brokers and agents in Rancho Cucamonga.
"The problem is there are no buyers," said Bayer, who attended the meeting with Appleton-Young sponsored by the Citrus Valley Realtors Association and the Inland Chapter of the California Association of Mortgage Brokers.

Bayer said in Moreno Valley, 59 homes in the multiple listings sold last month, while there are 2,200 homes on the market. She figures at that rate, it will take three years to sell all the houses now for sale.

Do the math.


Lost Cause said...

Fisrt. Bow to me.

Sac RE Agent said...

Dawg, that is sound business advice. If someone is not serious about selling their home and prices it unreasonably, why should I take that listing and spend money on marketing?

many of your readers believe they could sell their own home without an agent. let them overprice it, not use an agent and spend their own time and money on advertising.

Northern Renter said...

Sac RE
Is it really sound advice? I mean, it makes perfect sense if she is addressing this to the realtor. Why waste your time and effort for somebody who insists on 2005 sales prices? But quite often the advice is aimed at the sellers themselves. What I am wondering about is how many house sellers are there who don't NEED to sell? If you are living in the house and selling, you likely have to move someplace. If you don't live there but are a specuvestor, you want to get your butt out of there ASAP. So who are the people who don't need to sell their house but want to?

Best wishes to all and TGIF,


Sac RE Agent said...

While I understand what you're saying NR, there are plenty of people that put their houses on the market at a price that does not correlate with the market conditions. If a house doesn't sell at $x amount in 90 to 180 days, is the seller motivated or have to sell, if they put it right back on the market at $x or $x-$5000? Yet that happens consistently in today's market.

My guess would be that over half the inventory for sale is overpriced by a good 10 to 20%. There are definitely more listings expiring in a month than are selling in a month.

Rob Dawg said...

Sac RE,
I disagree. This looks too much like insider collusion to me. The correct advice is to educate potential sellers as to current market conditions. First, agents are not going to be able to refuse REOs and that's fast heading to half the market in your area for but one instance where refusuals looks like favoritism. If there is still retail resistance then charge them for taking a listing. Use a sliding scale depending on their willingness to adjust price and/or listen to your other professional advice. Straight up refusing to accept a listing is fraught with problems. What id the seller is a person of color? You really want to open this can of worms?

Lou Minatti said...

How cute. She tilts her head. How unique.

Lou Minatti said...

Also, she's hyphenated.

ha38349 said...

Telling them to discourage sellers is probably easier than telling them that half or more won't have jobs pretty soon:) Hmmm, I wonder if market manipulation is illegal. And as Rob points out you better be real careful about who you discourage.

ha38349 said...

And Murst.

Funny Circus Bears said...

I call bullshit.

That is my Uncle Larry with lipstick and earings and I claim my $5 !!!

Sac RE Agent said...

Insider collusion and market manipulation sounds pretty strong to me. Why would agents mainpulate the market into what it is today?

I've got no problem listing a house at whatever price a person desires to list it at. What I have a problem with is spending my money to market a house that is not going to sell.

A sliding scale is a good idea, but again, if a house is overpriced, there is a very strong possibility it's not going to sell. And there are still plenty of people that believe their homes are worth more than what the market says. Sadly your comment about a can of worms is too true, so you've got to do some CYA.

As for REOs, agents have to get on the list of approved agents for a lien holder to use them. Prior to this downturn (early 2006) there were only a few agents doing 90% of the REOs in Sactown. But there's pretty much no reason not to take a REO listing if offered, as lenders really don't ask you to do much marketing. But they also reduce your commission.

Troubled Loaner said...

This all brings up something I've been wondering about lately. Here in San Diego, I see new listings pop up daily, with 2005 sales prices. These homes are $150,000 to $200,000 overpriced in many cases.

I can understand that the seller is emotionally attached to their home, and probably hasn't done their due diligence as to market conditions. But what realtor worth anything would take that listing? I believe either (1) they are ignorant to market conditions, and thus are incompetent and unable to truly represent their client effectively or (2) they are so desperate to get a listing, any listing, that they take it on hoping that they might later persuade the seller to lower their price.

In any case, they are not helping their clients, themselves or their industry by helping to keep asking prices too high.

You can try all the little creative tricks you want, but in the end it's simple, house prices are irrationally high, and need to come back down to a fundamentally rational level.

Pleather Murse said...

What if the seller is a person of color? You really want to open this can of worms?

Yeah, it's always safer to mistreat white people, they are the only unprotected group. :(

Sort of reminds me of those recent HUD radio commercials that are supposed to warn landlords against discrimination, but the voice actor playing the landlord is clearly a white man while the list of "unwelcome" tenant groups he reads are all non-white.

The irony is that whites are actually a minority in california now.

H Simpson said...

Anyone notice that the crashing of RE prices in California started at the same time people started giving up on those power crystals?

Coincidence or trigger? You be the judge.

Actually, it may be a heck of a con,... errr I mean angl,.... errr I mean business opporutunity to give seminars to the RE industry..