Wednesday, March 8, 2017

Why I Am Not Celebrating

Good morning real estate friends, I am going to keep this short.. and I am sure many of you have gone through this or similar in this recent market but I listed a mediocre townhouse in Ajax on Thursday... did all my marketing and professional photos to get this house the most exposure in a short period of time... client has relocated to U.S. so property was vacant.

 Offers were last night and I received 14 of them.. which was not really a surprise. I expected quite a few based on the showings. The home was by no means priced TOO LOW for the market. It was priced based on last sale and improvements that were made to the other unit as opposed to ours. The other property sold for 615K... so I advised my seller we should list at 579K based on the work that was done to the other home compared to ours. They agreed and said, if they saw a "6", they would be thrilled... well my friends, they saw a "7".

Now my job is done but why driving home did I just keep shaking my head. This cannot continue in my mind. I am not being negative. I am trying to wrap my head around a townhouse being over 7 when 2 weeks ago a nicer unit sold for 615. I feel bad for all the agents that I had to call. They all said, they cannot believe what is going on and I agree.

Agents are out working their butts off and the public thinks they are all getting rich .. and if the truth be told, many agents are writing 10 offers or more before 1 goes through and spending countless weekends showing them and sitting in their car... and if they don't win, they don't get paid... so please please please, stop making out like agents are benefiting from this craziness. I can almost guarantee if you took a poll 90% of agents would like to see a more balanced market. Not this.

So why is it that 132k over asking doesn't have me doing a happy dance? Because it isn't about the money right now. It is actually about what is going to happen to this market because surely it cannot continue like this. And tell me what happens when all these expensive homes have mortgage renewals in a few years and the interest rates are higher, can they afford the payments? Will the values have decreased and now the homes aren't worth what they have invested in them?

This is just a dangerous ride we are on right now... I liked it better when we could negotiate, speak about our buyers to the sellers, build relationships with agents and not tear them down at all costs, all that has gone to the wayside. It is all about winning at any cost. It needs to end or at least slow this down and let's get back to what we do .. which is buy and sell real estate.

Congratulations to my Seller... I am so happy it worked out for you and
congratulations to the new Buyer and their agent and to the other agents and buyers that I had to make "THAT CALL" to, better luck on the next one... and now what will the next one list for??? Mind boggling. Ok that's my coffee rant for this morning. Thanks for listening and have an awesome week everyone. Cheers, Michelle xo

 "Keeping the REAL in real estate"
Direct Line:  416-300-3004
(Posted from my LinkedIn Post of 03/07/17)
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