Relocate to Wisconsin : What does Thinventory Mean to Property Condition ?

What does Thinventory Mean to Property Condition ?

 You can hear the echo coast to coast that inventory is thin and complaints are made loudly by Buyers and Buythinventoryers.....and some "wanna be" Sellers who have nowhere to go.  Sometimes Thinventory may have other "victims."  The victims are Sellers....Yes you read it correctly.  They are Sellers who may have gotten the message from their agent...maybe they arrived at this "delusion" on their own....either way...it's the wrong answer.

   The belief is.....that because a state of "thinventory" exists...regardless of the condition of the house...be it the need for updating , the addition of features or attention to top of the mountainmaintenance....they list the house at the tippy top of the market and beyond..because of course..there is Thinventory !

    They want to "take advantage of the market condition"...and after all you can't go back and list the property for more....so...Buyers....here it is..Yes...they could have painted, updated the flooring, breathed new life into kitchens and baths....but their belief was ...no need for any of that ...they are one of the few houses on the market that they know or have been told is desirable in terms of size and location.

   What happens when these Sellers ignore calendar monthsthe number one rule and don't get their home ready to sell....and set a price that reflects that the rule was obeyed with updates and is market ready in every sense of the word ? The days on market expand to months...the listing gets stale...  and the only thing that can change is the price....and it will time after time ....the profit 0nce dreamed of in the sale evaporates as days on market mount....and in the end, far less profit derived from the sale had the Sellers listed it at a price that was realistic....And done some preparation before listing the house.

       LIST FOR CONDITION....not just the ....number of beds, baths, square feet, neighborhood.....if the listing is compared to a house that every update, bell and whistle and the subject property does not...it cannot sell for the same price...Buyers, agents and appraisers do not see overpaying as a cure for "Thinventory".

   If you or anyone you know is looking for agents in southeastern Wisconsin who will price a property to sell not to sit....Call the Hansons...we are honored to be of service. 

Sally K. & David L. Hanson, ABR, CDPE, CSS, e-Pro,ILHM, REDS


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Comment balloon 9 commentsSally K. & David L. Hanson • January 03 2017 12:22PM

Comments

Good morning Sally K. & David L. Hanson ,

There are many sellers out there than feel the market is so hot they can list for any ridiculous price and get it! They are "ego" pricing and it doesn't work! A home in our neighborhood came on the market at $675,000. This house was never ever going to see this price! They have reduced and reduced so many times and are now down to $574,000..still too high and now 200 days on market! That is a long time in our market place! Interesting to watch for sure.

Posted by Dorie Dillard, Serving Buyers & Sellers in NW Austin Real Estate (Coldwell Banker United Realtors® ~ 512.346.1799) over 1 year ago

Good morning Sally and David. Becoming an issue in downtown Chicago condominiums as new construction offers competition to  the resale market. The pressure on proper pricing is increasing! Enjoy your day!

Posted by Wayne Martin, Real Estate Broker (Wayne M Martin) over 1 year ago

Good Morning Sally and David - it is time for potential sellers to stop living under  this delusion.

Posted by Grant Schneider, Your Coach Helping You Create Successful Outcomes (Performance Development Strategies) over 1 year ago

Good advice to list for condition and not just price.  Sellers always have to justify the price when a home is put on the market. 

Posted by Sheri Sperry - MCNE®, (928) 274-7355 ~ YOUR Solutions REALTOR® (Coldwell Banker Residential Brokerage) over 1 year ago

Good morning, Sally and David --- Yes to this post!  Thinventory does not erase reality.   

Posted by Michael Jacobs, Los Angeles Pasadena Area Real Estate 818.516.4393 (Coldwell Banker Residential Brokerage) over 1 year ago

Sally and David this is a great example of why regardless the market Sellers need to be represented by and listen to the advise of professional, knowledgeable Realtors like yourselves.

Posted by George Souto, Your Connecticut Mortgage Expert (George Souto NMLS #65149 FHA, CHFA, VA Mortgages) over 1 year ago

Very good points, Sally and David.  Even in the most extreme buyers' markets a home that is in poor condition and/or overpriced will be difficult to sell.

Posted by Gabe Sanders, Stuart Florida Real Estate (Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales) over 1 year ago

This is the first for me hearing the term "thinventory". It's so true....I've seen it so many times. Sellers who think they are going to make a killing and they have no clue!

Posted by Sharon Tara, New Hampshire Home Stager (Sharon Tara Transformations) over 1 year ago

I find it happening here too where sellers and their agents ignore property condition. Those the homes that appear to be sitting longer and some going unsold for many months Sally K. & David L. Hanson 

Posted by Scott Godzyk, One of Manchester NH's Leading Agents (Godzyk Real Estate Services) over 1 year ago

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