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REAL ESTATE
From the RealEstateJournal Archives

Mistakes Anxious Sellers Make,
Getting More From Your Agent

by Lauren Baier Kim
November 07, 2007

Here's a look at what's new in real-estate markets across the U.S. from around the Web. (Some links may require registration or subscriptions.)

Good news, bad news in Phoenix

In the Phoenix metropolitan area -- where home resales hit a record monthly low in September -- one out of every three homes for sale are empty, a factor that is likely to keep area home prices trending downward, says an Arizona Republic article. These vacant homes are owned by investors, homeowners who have moved on to other residences or banks that have foreclosed on the properties, the newspaper says. Further price cuts are inevitable as these owners look to unload their properties, the Republic says.

In a separate article the Republic looks on the bright side, reporting that the spread between listing prices and selling prices dropped from February to September. This could mean that home sales will start to pick up, as sellers' prices begin to meet buyers' expectations, the newspaper says.

According to data cited in the story, "the median price of metro Phoenix homes listed in September was $265,906, and the median price of houses sold was $234,900. There's a spread of a little more than $31,000 between the two. In February, the spread between listing and sales prices was $43,000. In February 2006, as the market was starting to slow, the spread was $50,000."

San Diego fires under control, but not rents

The San Diego fires may be under control, but now that the disaster has been contained, area rents are moving upward, reports the voiceofsandiego.org, a nonprofit news Web site. Since the blaze, 20 of the 118 residential rental listings on the Multiple Listing Service in Poway, Rancho Bernardo, 4S Ranch, Santaluz and Rancho Penasquitos have raised their rates, according to the Web site. Some of these property owners may be looking to profit from others' hardship -- some 1,588 homes were destroyed by the fires and 320 were damaged -- and many of these homeowners may be looking to stay nearby to uphold jobs and other obligations, the newspaper says.

Related Links

Read WSJ.com's new Developments blog, which offers analysis, tips and insight into the housing slowdown and subprime mortgage meltdown.

More Open House columns

Meanwhile, other homeowners may be increasing rental rates in an effort to escape foreclosure -- like a seller in the Mirasol gated neighborhood of Santaluz who lifted his rates from $8,000 a month to $10,500 a month after the fires and is facing the possibility of only being able to sell his home for $1.49 million when he owes $1.6 million for the property, the Web site says. "It's not that we're trying to be greedy," the homeowner's real-estate agent says. "If we don't have it at this price his costs won't be covered."

Anxious home-seller mistakes

Homeowners who fret too much about selling their house can do more harm than good, says Ellen James Martin of the South Bend Tribune of South Bend, Ind. She points out common mistakes that home sellers make when they work to speed the sale of their home -- errors that can hurt their chances of selling. One goof is upping the pressure on the listing agent, she says. Instead of spurring your real-estate agent to work harder to get your home sold, pushing your agent too hard can backfire. An agent who receives too many urgent phone calls or emails from a seller may "resent your persistent inquiries" or even drop you as a client, Ms. Martin says.

Another flub is thinking that hosting more open houses will be the answer to your problems. Open houses most often attract curious neighbors or house hunters who aren't serious about buying, Ms. Martin says. Instead, she suggests requesting an "office caravan," in which other agents visit the home and offer advice on how to increase its sales potential. If your home isn't selling, reconsider your asking price and compare it to what's being sought for similar properties on the market, Ms. Martin advises. Today's buyers are looking for bargain prices, she says, and aren't "going to waste their time trying to negotiate with someone asking too much."

Sellers demand more of agents

With so much information available about the housing market on the Internet, today's home sellers are more informed than ever, says a Philadelphia Inquirer article. This can make real-estate agents' jobs easier and tougher, the newspaper says. Thanks to the Internet, sellers are more apt to understand why an asking price has to be dropped, the Inquirer says, but on the other hand, sellers are demanding more than ever from their agents because of slow home sales. To stand out from the competition, today's sellers want exposure on multiple Web sites, professional photography and brochures of their homes, as well as multiple open houses and plenty of feedback from their agents, the article says.

"Just putting the home in the MLS and [posting] a yard sign is simply not enough," one area agent says.

While sellers are asking for more from their agents, agents are providing more, as well. "I offer a free cleaning service to my listings before the property is shown," says one agent. He can have painters and landscapers at a home in 48 hours, he adds.

Ms. Kim is a senior editor at RealEstateJournal.com.

Join a reader discussion about the housing market.

Send links to articles about residential-real-estate markets to Lauren Kim at lauren.kim@wsj.com.

Email your comments to lauren.kim@wsj.com.


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