A Letter to the Some of the Sellers in Some of the Lake Communities in NEPA (Harmony: for sale, 2015)

[forrest1234]

This is a letter to some of the sellers in some of the "lake communities" in NEPA. Just some friendly advice! (All just my personal opinion, YMMV)

1. Our country just went through the biggest housing crash since the Great Depression, in a chain of worldwide financial havoc that is ongoing. We haven't even hit the bottom of the housing market yet. According to many experts, once we hit the bottom, things are not going to start going back UP. They are hoping for the declines to stop at this point. Money is tight, unemployment is high, you get the idea and you know all of this. Moving on.

2. Your house is not special. I'm sorry to break this news to you. I know you had some great times in your little lake house, lots of good memories! But to the prospective buyer, it's a commodity, because there are 400 other houses for sale just like yours. Your house is a commodity that probably needs an overhaul with some new flooring and paint before anyone else would even start using it.

3. Do not look at the other listings to see if you priced your house right. Your listing price and that of your 400 peers who are also listing their homes for sale right now is just....a fantasy.

4. It does not matter what price your neighbor sold for 5 years ago. Actually it does matter, because you are probably never going to get what your neighbor got five years ago. So it's good to know what price you are not going to get. For a rough estimate of what your home might be worth now, take what your neighbor got five years ago. Then subtract 30% off for a start. That's about right! See Number One above for more explanation.

5. Better yet, ask your agent for a market report of SOLD houses in the past year. I repeat, SOLD. SOLD. SOLD. Houses that sold. Sold houses are houses that people actually forked over money for. Ask your realtor to make you a pretty report! That's her job and she enjoys it. Make her happy.

6. Then be open to reality as you examine the report with your realtor. Go for a little drive, go look at the ones that sold, look at the interior pictures that your agent can also print for you. And maybe even ask your realtor for her honest opinion on what your listing price should be.

7. Don't worry about the results of this conversation with your realtor! If you don't like what your realtor tells you, you can always fire her and then get a new agent who really understands you and your needs, and you can re-list the house with a clean slate! No one needs to know! (Except the millions of people who know about the website Zillow, but small detail, small detail).

8. Things probably won't get better after your house has been on the market, on and off, for 1,000 days. Just sayin'. And writing "one thousand days" is kind of fun. One thousand days.....

9. You are not "losing" money if you accept a bid under your listing price. You have not made any money, or lost any money, until you cash the check after the closing.

10. Now let's get down to the numbers. If you are asking 30% above those sold comps, you are probably never going to sell unless you are willing to accept offers at 30% below your list price. See Number Four above.

11. I suspect that if the realtors charged you even $10 dollars a month to keep your listing up on the computer, lots of listings would change price or be pulled off. I know, what have you got to lose listing your home at your fantasy housing peak price for months and years? I know, I know. You have nothing to lose. Except the carrying costs I guess. But you are also wasting everyone's time, most importantly, your own.

12. At the end of the day, if you wait long enough, there is only one place your house is going....to your estate. I don't mean to be harsh, but it's true. It's true for all of us. And see Number One again. The housing run-up was fun! I know it was! I made some imaginary money too! But it's not coming back anytime soon.

Cheers. And good luck.

[Jo Bloe]

And how is this specific to the "lake communities" ??
Sounds like you looked at them and can't afford one and now you're pissed.

[DE_NePA]

Originally Posted by Jo Bloe

And how is this specific to the "lake communities" ??
Sounds like you looked at them and can't afford one and now you're pissed.

Or she's a frustrated realtor dealing with folks who over value thier property.

Either way, you're right, nothing in her post is lake community or NEPA specific. I think someone just needed to vent.

[Huskyz]

Some well written advice but it applies to a much larger audience than just NEPA lake communities.

It reflects what much of the country has been experiencing for years, and probably will continue.

Eventually some sellers (and buyers..) blink or they sit.

[Lehigh Valley Native]

I don't know about this. I have always thought that gated community lake houses to be priced pretty cheap.
Houses not in a community, like Harvey's Lake or Lake Harmony, seem to me to be more expensive.

[PWGUNNY]

A seller has the right to ask whatever they want for their house. If they wish to lower the price to sell it more quickly they will. If you can't afford their price, it is your fault not theirs. What a foolish post.

[yorickshead]

For "friendly advice" it sure wasn't written with a particularly friendly tone. I take it you're looking to get yourself a lakefront house for a song since the market is so bad, and you're unhappy that the sellers of the houses you like won't just hand them to you. Here's some friendly advice back....you know those other 400 comparable houses that are for sale at much more reasonable prices? Go grab yourself one of them. Good luck...nothing like watching the sunset from the deck of your lakefront home.

[poconoproud]

If you want a lakefront, you aren't paying for the house, doesn't matter how special or how plain the home..you're paying for the luxury of the view...and it's a view that comes at a very high cost. Pay it and enjoy ~ or don't and enjoy the view of the dirt road or your neighbor's house or the highway...the choice is yours.

[forrest1234]

I do agree that what I am seeing could apply anywhere. However, there are some dynamics going on in the NEPA lake communities that are specific to these types of communities.

There are many unoccupied homes on the market in these communities. In many cases, I see a lack of pride in taking care of the homes once the homes are vacated. This includes not arranging for landscaping for the exterior and not taking care of the inside. Remedies include hiring landscapers for the exterior, leaving furniture in place, perhaps someone to run dehumidifiers for you, or even hiring a cleaning service to come in once a month (yes, even unoccupied homes need to be cleaned). Vacated homes can quickly take on an abandoned presentation.

For the buyers I have coming up, they are often disgusted with the state of many of the homes I am showing them. They step in, the house is empty, the smell of disuse hits them, there are weeds all over the place, and they are running back to their cars. And yet, the sellers are still demanding premium peak prices!

The level of stubbornness on the behalf of the sellers in these communities is staggering, especially since most of these homes are second-homes. A sure sign of this stubbornness is where you see the switch of realtors or a extremely long DOM.

I don't believe we will see a turnaround in these communities for a long time, and I also believe that there is a level of financial distress simmering below the surface as well. For the individual seller, I recommend being aggressive with both the pricing, as well as the staging and upkeep of the home. You don't have a shot otherwise IMO.

[Irish Eyes]

Originally Posted by forrest1234

I do agree that what I am seeing could apply anywhere. However, there are some dynamics going on in the NEPA lake communities that are specific to these types of communities.

There are many unoccupied homes on the market in these communities. In many cases, I see a lack of pride in taking care of the homes once the homes are vacated. This includes not arranging for landscaping for the exterior and not taking care of the inside. Remedies include hiring landscapers for the exterior, leaving furniture in place, perhaps someone to run dehumidifiers for you, or even hiring a cleaning service to come in once a month (yes, even unoccupied homes need to be cleaned). Vacated homes can quickly take on an abandoned presentation.

For the buyers I have coming up, they are often disgusted with the state of many of the homes I am showing them. They step in, the house is empty, the smell of disuse hits them, there are weeds all over the place, and they are running back to their cars. And yet, the sellers are still demanding premium peak prices!

The level of stubbornness on the behalf of the sellers in these communities is staggering, especially since most of these homes are second-homes. A sure sign of this stubbornness is where you see the switch of realtors or a extremely long DOM.

I don't believe we will see a turnaround in these communities for a long time, and I also believe that there is a level of financial distress simmering below the surface as well. For the individual seller, I recommend being aggressive with both the pricing, as well as the staging and upkeep of the home. You don't have a shot otherwise IMO.

Do you not prepare them before you go in? The most annoying thing about buying our house was realtors that would take us to properties they had never seen themselves.