Chicago Suburbs Real Estate News

I have a townhouse listed where we received an offer after many months on the market.  With negotiations, we were only $5,000 under list price.  Yet the seller would not accept the offer.

In his defense, although he had the townhouse on the market for quite some time, he wasn’t motivated enough to sell at less than list price (which was after several price reductions over the months) because he wasn’t quite ready to move out yet.    And he truly thought he could get full price.

He Doesn’t Believe the Doom and Gloom Put Out by the Media

He actually told me he doesn’t believe we’re in a recession, or it’s not as bad as the media would like us to believe.  He mustn’t have much money in the stock market!  He told me this so-called recession isn’t changing his lifestyle and he went so far as to say it’s probably not affecting mine.

Boy is he wrong!  In 2008 I earned less than half of what I made in 2007.  I have a feeling it’s going to be even worse for 2009.  I am working much harder for less money.

Where my average sales price was around $250,000-$275,000 per sale, I can tell you that average price has certainly decreased.  The majority of my sales this year have been foreclosures.  I’ve had more sales under $100,000 this year than probably 10 years ago or longer!  I know we’re in a recession and it is definitely affecting me.

Yes, I’m working, but…

My best friend lost her job.  She is getting unemployment.  She isn’t happy about the situation but she is getting some money without having to work.

As an independent contractor I cannot file for unemployment.  I am getting a fraction of what I normally earn and I’m working hard for that smaller amount.  Yes, it is my choice to be an independent contractor and I’ve accepted the fact that I am not eligible for unemployment, healthcare benefits and paid sick time and vacations.

Maybe I’d be better off if I chose to work a 9-5 job with benefits, but I love selling real estate.  I’ve been doing this for 26 years and can’t imagine doing anything else.  Instead of 9-5, I sometimes work 7 days a week and all hours.  Again, it is my choice, but sometimes it isn’t easy.

Back to my seller

After the unaccepted offer only $5,000 under his list price, he told me to temporarily remove his property from the MLS because he was going to paint his place and he is sure once he does it will sell quickly and for full price.  Wrong again!

You see, I didn’t think his townhouse needed to be repainted.  And even if he felt it did, a paint job is not a guarantee of a quick sale or of getting full price.  He was still up against a lot of competition, some units offering more than his.  But after showing him all of the data he just doesn’t want to accept the fact that maybe he should drop his price and get real.

Why do I keep working with him?

Besides having a skewed view of our economy and his townhouse, I like him.  If I’m not trying to convince him to reduce price, we get along well.

His place is nice and we’ve had showings.  In fact, I’ve showed it myself several times.  I’m hoping that as he gets more motivated, he’ll finally give in and let me price it to sell.

If he were a demanding seller that was getting upset with me for his own choice of price or wanting me to put more effort into his listing than what was promised, then I would let him go.  But he is otherwise easy to work with so there’s no reason for me to walk away.

I would love to get his place sold but until he accepts that we are indeed in a recession and a slow buyer’s market with too much inventory and few ready, willing and able buyers, his townhouse will probably sit.  In fact, I’m getting more adamant about not taking overpriced listings – not even at a “try it” price.  It doesn’t do the seller any good and it sure doesn’t do me any good.

If you’re interested in purchasing real estate, such as Oak Lawn homes for sale, give Judy Orr a call at 708-536-8200 or fill out my Home Finders Form.