Understand the Market, or Loose Your Shirt!

We recently (actually just over a year ago) had a beautiful home listed out Williamson Valley Road, that unfortunately went to foreclosure. So, we contacted the bank to see if they would want to list it with our team. The bank rep. indicated he was coming to town to get the listing signed (and we understood that it would be with our team). So, we prepared our market analysis and marketing plan, emailed him all of the documentation, and scheduled a time to meet. Several weeks later, I met him at the property as planned, with the intention of signing the listing. Just to back up a little, this home had been listed previously for $1.15 Mil, expired at $899,000, and we subsequently listed it for $849K. We were stuck on price as the seller had no room to come down.

So, the nice gentleman from the bank comes to town, and from the first minute I meet him, begins to tell me why he wasn't going to list the home with our team. Given the circumstances, and our track record, I could only be led to believe that it was because he didn't like our recommended listing price of $725K (which would have likely brought a contract in a relatively short timeframe at the time). He insisted the home was worth more, and he wasn't going to be listing with us, so I bid him "good luck", and went on my way. So that brings us to yesterday, when we discover the home had recently sold! Upon further review, here is the briefest possible summary of the listing from the day we parted with it.

Original list price with agent #3: $875K (yes, $150K higher than our recommendation)
Final list price with agent #3 prior to expiring 8 months later: $765,500! (getting closer to our price)
Original list price with agent #4: $695K (yikes, now the bank is loosing big time)
Final resting place with agent #4: $518,750 (they lost how much by being greedy? Right around $200,000 in all likelihood!)

So while this saga ended yesterday, many more situations just like this one are playing out today, as we speak. In the above scenario that is almost painful to watch is all too familiar to us in this market. And, if you are to gather one thing, it should be this (and you can quote me). In a declining market, the sooner you take your "loss", the more money you will make! Sounds crazy doesn't it? But it is true. Because you see, with every passing day, that "equity" that has been falling out of your pocket for the last 3 years continues to flutter away in the wind. Time is the enemy. Just be sure you don't let time erode all of YOUR profits! Yes, if you need to sell in the next 3 years, you don't have more time! There is only today! You must sell NOW!