Cats, Real Estate and the FutureTopic: Real Estate Value
I have a couple of pets. They teach me a lot... especially Rosie the Cat. What she believes to be true is true for her and she is incredibly reluctant to change her point of view. 5:30 PM is her nightitme feeding time. Not 5:40 or 6:00... 5:30!! I think people can be like that.
During the real estate frenzies of 2004-mid 2005 we sat awestruck at how the value of our homes increased. We thought people were nuts. Homes that sold for $400,000 in 2003 were fetching over $700,000 in May of 2005. Then the cat thing happened. We believed our homes were really worth that much and no one was going to tell us different.
2006 and 2007 came as affront to our senses. People (prospective home buyers and appraisers) were telling us our homes were not worth what we thought. Our mean, unthinking Realtor told us we needed to lower our expectations and our listing price. Some did, some meowed loudly and didn't.
Late 2007 and early 2008 the pressure built. Home buyers refused to buy high priced homes. They became cat-like in their stubborn price positions and found a new source of food... the foreclosure market. It was 5:30 PM and the home buying cats were happy.
Sitting in our sand boxes and after countless news articles, conversations and disappointments today's home selling cats realize their homes are worth little more than in late 2004 and not nearly as much as 2007. We're mad but we are cats and, as such, have to maintain our dignity. Go ahead, lower the price. Just find us a home buyer, it's 5:30 PM.
About the Author: Gene Urban
Gene Urban is a partner with the Urban Team, a residential real estate practice in Phoenix, Arizona. Gene's work can be found on UrbanLifeBlog.com and numerous other blogs sites in the US.