Tuesday, July 5, 2011

swim team and house selling

My 7 year old daughter showed up to her first ever swim team practice this summer. The city of Austin now requires all kids to show they can swim a length of the pool using free style and then another length using back stroke. The back stroke got her. It was a bummer for the both of us to leave the pool before the practice ever got started. She was "ousted" on her first day and it annoyed me and was a shock to her. I thought she would be enjoying her first day on her first swim team just like my memories of summer swim teams. Instead I was wondering what I did wrong to set her up for failure.
Selling a home can be a similar experience. The market is continuously changing. New homes enter the market with better pricing or better conditioning which under cut other homes on the market. The competitiveness of this market is not what many sellers experienced when they bought over 4 years ago. A seller can get a solid valuation on pricing but 45 days later it could need adjusting. The time on the market has increased over 20% so it seems like forever to get showings. Sellers need to be patient and be ready for a marathon not a quick closing/race. Buyers don't feel pressure to buy before someone takes a home they like. This translates into 2-3 days before making an offer AFTER seeing the property. Everything is slower. Even the response time in negotiating an offer is taking longer (and instead of closing a loan in less than 25 days, expect under 45 days). Then a seller sees other homes sell which they don't believe is as good of a comparable - "why them and not us". It is very difficult for a seller to objectively look at another competing house on the market. In my mind selling a home and my daughters swim team experience became connected.
We got together with my daughter and discussed a plan similar to a seller sitting down with a Realtor for a plan. She got a few private lessons just like a seller can hire a few private contractors for some "make ready issues". She made the swim team after those helpful lessons similar to a house making the 'top 3 list' of a potential buyer (the work pays off). My daughter adds a little practice to her strokes while enjoying a general swim just like a seller who cleans a little more than usual. Last Saturday was her first meet and like a showing she was ready. Her first meet did NOT end with a ribbon (win/place/show) but she will repeat the process and be ready for the next competition just like a seller should be ready for the next showing.

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