We are half way through another year and you have to ask: “Are we having fun yet?”.

For the first six months of the year, there were a total of 364 residential home sales compared to 306 for the first half of 2009. That’s a solid 19% increase. The average sales price so far this year came in at $298,945 compared to $254,071 for the first half on 2009. We are still pretty far below the $363,753 average sales price for the first six months of 2008, but we are certainly headed in the right direction on the number units sold and average price. There were sixteen homes over $1 million so far this year compared to just six in the first half of 2009. That seems to indicate that, at least in some quarters, there’s a positive outlook about investing in high end real estate. There also was an increase on sales below the $200,000 mark: there were 195 in the first half of 2010, 170 in 2009, and only 119 in 2008. There was a slight bump up in the $200-300,000 price range from 67 sales during the first half last year to 79 sales so far this year.

On a rolling 12 month basis there were 779 sales at an average sales price of $308,917 this past year ending 6/30/10 compared to 667 sales at an average $298,862 for the prior twelve month period. That’s a 17% increase in total sales over the past year which is really a very good sign. Actually, I think it is a great sign!

We seem to be posting small gains every month now. It is kind of like putting spare change away every night and pretty soon you can afford a night out on the town. The real estate market did not deteriorate overnight even though it might have felt that way, so it is going to take a while to get back to normal or to whatever the new “normal” will be. Buyers, sellers, and everyone else involved in the real estate world will adapt to that new market level. Hopefully the financial safeguards and lending guidelines that have been put in place will prevent another meltdown and also, hopefully, not choke the public’s ability to buy homes. The market has changed dramatically but with interest rates at unheard of lows, a huge inventory of homes to choose from, and incredible values to be found it is the perfect time for those with the desire and ability to purchase a home. The desire for homeownership is solidly ingrained in our culture, so it is obvious that “ability” is the real stumbling block to a complete turn-round in the housing market and that hinges on a resurgent economy and job creation…

There are still a lot of foreclosures and bank owned properties coming on the market. We all know that these foreclosures are due to a bad economy in general resulting in job losses and home values plummeting. Many homeowners just got over extended and couldn’t pay the bills. So it worried me over this past 4th of July that the home most symbolic of our independence and freedom, The White House, might end up being auctioned off. We all may own a piece of that place, but no one is more over extended than our own government right now. If you or I were a trillion or two behind in payments we’d be out on the street fairly quickly. But then again, we don’t have the armed forces to keep the sheriff from serving papers do we? Here are some things to consider if we had to sell “our house” down in D.C.:

First of all, this 55,000 square foot, six level home has 132 rooms, 16 bedrooms, 35 bathrooms, 28 fireplaces, 3 elevators, 8 staircases and sits on 18 acres in the middle of the city. When construction of this home started in 1792 it was located just north of a swamp. Today, Congress is actually located to the Southeast. The most obvious thing that comes to real estate agent’s mind is that “they over built for the area”. This may not be an easy sale.

This “Presidential Mansion”, as it was once called, was designed by an Irishman named James Hoban. When George Washington looked at the plans he thought the house was too small and wasn’t fancy enough for a President. So one of the first federal construction projects got increased in size by 30% and was all gussied-up so it could also be called the “Presidential Palace”. Obviously, this was an omen of things to come. The construction took eight years at a cost of $232,371 or $2.8 million in 2007 dollars.

Many historical homes boast that “George Washington Slept Here” thereby increasing the value of the property. Provenance is everything to some buyers but unfortunately, George and Martha never slept in the White House. That could hurt our asking price some. John Adams, our second President, and his wife Abigail were actually the first to live in the home even though it was not completed. John apparently got an earful more than once from Abigail about the unfinished state of the home and ongoing construction. Sounds familiar. When Thomas Jefferson moved in he complained that the place was too big but then proceeded to lay out designs for new additions. The place is really a bit of an “expansion mansion” as it was added onto many times over the years. You have to wonder if things are up to code. By 1948 the White House was in pretty tough shape due to years of poor maintenance and President Truman ordered a complete reconstruction. This place sounds like it could be a home inspector’s nightmare…or maybe his ticket to retirement.

We also have to disclose that the property has had several fires. It was completely burned down by the British during the War of 1812. There was another fire which completely gutted the West Wing on Christmas Eve 1929 while President Hoover was at a holiday party in the main part of the home. In fact, one article I read says there are several minor fires there every decade. I’m not sure what the lender’s underwriter will think about that but I’m sure they will make it an issue.

Decorating a home like this can be a nightmare, but just about every President (his wife, to be more accurate) has redecorated the place to their own tastes. Can you imagine how many layers of wallpaper there must be in some of these room. Maintenance on a home like this can be never ending. Unfortunately, vinyl was not yet invented in 1792. It takes 570 gallons of paint to keep the White House looking white. Painting trim can be a big chore with 147 windows and 412 doors. This won’t be sold to a retiree.

But there are a lot of great amenities to help the sale. Truman made sure the place got central air in 1948. It also has a bowling alley, swimming pool, exercise room, jogging track, movie theater, billiard room and a dubious security system. The dining room can seat 140 of your closest friends and the gourmet kitchen is fit for a chef—five of them to be exact. Sounds like a Governors Island waterfront! It is clear that this home won’t appeal to everyone. While it is a historical home, buyers today don’t want money pits. They want new, modern, and easy to maintain homes. It could be a difficult home to sell except at a steeply discounted price. After all, no one has any money except for the Chinese. With that kitchen and dining room it could be the “White Dragon Palace” featuring General Ike Egg Rolls, Washington Won Ton Soup, and Clinton Chow Mein. They could even have specials: Pelosi Pork and Rangel Rangoon.

One only needs to look around to see what would get these prospective buyers to stop at your house. Bikini bike washes in your driveway will usually work. You’ll need a good sign and obviously someone to wear bikinis, so you should try and line up some college co-eds earlier in the year. Having a vendor selling T shirts, bike parts, or doing tattoos in your yard also works extremely well. If you have a pool in the back yard, a sign on the road advertising “Beach Bar Open” can be really effective marketing especially if you get the scantily clad Wild Turkey or Jagermeister girls to work the pool area and perhaps hold up signs near the street. The girls are essential as there is a lot of competition in this area just like in the housing market! Several other good ways to get potential buyers to stop is to advertise free camping in your back yard, put up a “Rally Headquarters” sign, or “Poker Run Stop” sign (all you need is a deck of cards). To make your property stand out paint your garage orange and black. To really get noticed, fly the American and MIA POW flags in your yard as bikers are very patriotic.

Once you get the bikers to stop you need to get them into the house. A “Free Beer Tomorrow” sign with an arrow pointed to your front door works well but may irritate some of your prospects because bikers aren’t stupid, they live for today, not tomorrow. Probably the most useful method will be a “Rest Room” sign. That is guaranteed to work.

Now that the biker/buyer is in the house, you can win him over easily with a few decorating tips. In the bath make sure that there’s a lot of chrome. Burnished bronze accessories don’t work for a biker. Towel and face cloth racks, lights, mirror frames, and shelves should all be chromed. Floors should be black and white tile. A black leather toilet seat cover would be perfect. You need a shower big enough for two (three is preferable). Once you’ve got his attention with the bathroom you can seal the deal with the living room. The living room should have, if it already doesn’t, a pool table dead center and black leather couches and chairs with leather saddle bags draped over the armrests. A large flat screen TV is also essential in this room. Throw in a few neon signs for ambiance and you are all set. If your wife doesn’t let you take it this far upstairs (i.e. if you are not a biker), then make sure your basement or your garage is outfitted as above. If you have no garage (that may put your home out of the running completely) you must make sure that your buyer can at least get his bike into the basement for storage in the winter. Storing the bike in the living room would be much better, but that could mess up the placement of the pool table.

Following these few simple suggestions should bring you a buyer during bike week, but you really shouldn’t try any of this alone. Always consult with a real estate agent (like me) that also rides. It is your safest bet to have a true professional biker/agent help during this opportune selling time! Next year I might even change my real estate yard signs to an orange and black sign just like the Harley Davidson logo, that should help.

The residential home sales activity in the Lakes Region during May 2010 was just about the same as in May of 2009. Last month there were 68 transactions at an average sales price of $314,665 and a median price of $183,000. In May 2009 there were 69 transactions at an average of $258,828 and a median sales price of $187,000. Home sales for the rolling 12 month period ending 5/31/10 totaled 765 transactions at an average sales price of $308,823 compared to 669 transactions at an average sales price of $307,896 for the 12 month period ending 5/31/09. That is a 14% increase in the total number of sales for that period. That’s certainly better than going the other way! Let’s hope home sales remain strong over the next few months and that everyone has a safe and sound bike week!

The largest sale on Winnipesaukee in May was at 46 Rocky Winds Drive in Moultonborough which was listed for $4,295,000 and sold for $3,900,000. This spectacular Adirondack lake home was built by one of the premiere builders in the Lakes Region, Skiffington Homes, and has 8,000 square feet of living space, seven bedrooms, eight baths, gourmet kitchen, five fireplaces, elevator, and…well just about every amenity you could possibly want. This impeccable home sits on a 1.2 acre lot with 200 feet of water frontage, a sandy beach, a permanent 50’ U-shaped covered dock and westerly views. I expect the new owner will have a fantastic summer! So will Joe Skiffington…

Another fine property at 124 Beede Road in Moultonborough that was originally offered at $1.595 million, was reduced to $1.35 million, sold for $1,198,500 after 250 days on the market. This home is a 3,594 square foot, three bedroom contemporary home built in 1996 that features a large open floor plan with a huge great room with a stone fireplace, a first floor master, and a wall of glass looking toward the lake. It also features two huge decks for outside entertaining, 304 feet of frontage with a sandy beach and a U shaped dock.

Over at 118 Pendleton Beach Road in Laconia a deal was struck on a 3,510 square foot, four bedroom contemporary that was built in 1979. Originally offered in 2008 for $1.699 million it sold for just about its assessed value at $1.15 million. The least expensive waterfront property sold in May was at 12 Wagon Wheel Trailin Meredith. This 1940’s vintage lake cottage on a level .33 acre lot had 90 feet of frontage, great westerly views of the bay and a sandy beach. The new owners plan to live there a while and eventually replace it with a new structure. This property was on the market for $699,000 and sold for $660,000 which was $108,000 below assessed value.

There was only one sale one Winnisquam in May which was over at 262 Shore Drive in Laconia. This home was built in 1974 and has 4,472 square feet of living space, seven bedrooms, and four baths. The .85 acre lot has 340 feet of frontage, a sugar sand beach, three docks, and southwestern exposure. Originally offered in 2008 at $1.075 million, it sold for $837,500 which was $112,000 less than its tax assessment.

You can always find the vey latest listings on Winnipesaukee right here at Lakes Region Home!

It is no secret that it is taking longer to sell mid to upper end homes in today’s market. Homes currently on the market priced over $400,000 have been on an average of 213 days. The average days on market calculated by our MLS are lower than the actual days on market due to the fact that the system can only account for how long the home has been listed with the current real estate agency. Many homes have been listed multiple times with different agencies therefore the average days on market figure is higher—possibly a lot higher.

As of June 1, there were 163 homes listed with the same agency for more than a year and 29 of those were on for over 2 years! There were 7 new construction (to-be built) listings that exceeded 1800 days on the market (which actually is not unusual and they might be there another 1800 days).There were three other properties that exceeded 1,000 days on the market. There is an 800 square foot cottage in the water access community of Balmoral in Moultonborough that started out at $194,900 about 1113 days ago and now is offered at $184,900. Another is a 2,100 square foot, 3 bedroom home on the Merrymeeting River at 32 Suncook Valley Rd in Alton that was originally offered at $895,000 and has been reduced to $549,000 and has been on the market or 1092 days. Lastly there is a two bedroom cottage in the prestigious Bald Peak Colony in Moultonborough that was listed for $645,000 a mere 1097 days ago is now down to $450,000. Do you think these sellers might be getting a little anxious by now?

But you know, some homes do sell quickly! Since the first of the year 108 out of the 278 homes sold (as of June 2) were sold in less than two months! Of those, 64 homes sold in less than a month! The homes that sold in 31 days or less averaged 97% of their asking price and the average sales price was 87% of their assessed values (for those listings reporting their assessments). Homes that sold between 32 to 62 days of coming on the market garnered 91% of their asking price and the average sales price was 96% of their assessed values. The average time on the market for all 278 homes that sold was 162 days. Now some of these homes could have been on the market with another agency for more money before, but you get the drift.

You had to be Einstein to come up with E=mc², but you don’t have to be a genius to figure out that providing a buyer with a good value = lower DOM.

The housing market continues to show some improvement

The highest sale award in April goes to the property located at 140 Alpine Park Rd in Moultonborough at $3.8 million. It was the only sale over $1 million but is was a really nice one. The home is a new 8,000 square foot Adirondack Winnipesaukee waterfront on 2.8 acres land with a 288’ white sand beach. This high quality home by Scott Fuller Development has six bedrooms, eight baths, gourmet kitchen, great room, home theater, exercise room, a three car garage, and great sunset views.

Do you remember the 1972 rock classic by Steelers Wheels entitled “Stuck in the Middle With You”? It should be the new theme song for all of the mid-priced home owners (and maybe their agents) that are having a hard time selling their homes. The second verse (for those that need a hint) goes: “Yes, I’m stuck in the middle with you. And I’m wondering what I should do, It’s so hard to keep a smile on your face, Losing control, I’m all over the place, Clowns to the left of me, Jokers to the right, Here I am, Stuck in the middle with you” (you can designate who are the clowns and the jokers anyway you want). It seems like there always is a lot of focus put on the high end waterfront sales or the first time home buyer market, but what about the stuff stuck in the middle? What’s selling and why?

Well, what sold in the middle in the Lakes Region was mostly more waterfronts or at least water access! In the $200,000-300,000 price group there were eight sales that would be considered primary residences, two water access homes, and four waterfronts (two on Half Moon, one on Locke Lake, and one on Silver). In the $300,000-400,000 price range there were just two primary homes sold, three water access properties, and four waterfronts (two on Winnisquam and two on Winnipesaukee). In the $400,000 to $1 million category there were two water access homes and six waterfronts (two on Winnisquam and four on Winnipesaukee).That means 21 (out of 31) of the mid-priced homes had something to do with floating a boat or getting in the water!

An example of a single family home “in the middle” that did sell in April was a very nice 3,098 square foot, 4 bedroom, 2 bath colonial built in 2004 at 15 Simmons Court in Tilton. It was on the market for $294,000 and sold for $277,000. There also was a 3968 square foot, four bedroom, 4 bath colonial built in 2008 at 397 Bean Hill Road in Belmont. It was listed at $330,000, sold for an even $300,000, and with an assessment of $388,300 it seems like the new owner got a great deal. But it took 634 days to sell so it was stuck in the middle for more than just a little while.

Right now the problem is there are way too few buyers out there. So unless you are somehow able to “just add water”, my advice is to pay close attention to your price and make certain that your potential buyers see your home as a real value or you will be stuck for a while, too. So “If you are trying to make some sense of it all, But see that it makes no sense at all” stayed tuned to this column and I’ll keep an eye on the middle for you over the coming months…

There were 1169 residential homes available as of May 1 in the communities

Home sales will have to increase significantly in order to bring this high inventory level down to a more reasonable level. Unfortunately (or maybe fortunately), the housing market has been taken off life support. The first time home buyer credit of $8,000 has expired (they pulled the plug so to speak) and I don’t think that is necessarily a bad thing. No one can stay on life support forever. It will be interesting to see what happens moving forward with sales of homes under $200,000. Many first time buyers took advantage of this stimulus and as a result 56% of the homes sold last year in the Lakes Region were under $200,000. While propping up the housing market by stimulating sales was very necessary and essential to helping stabilize our economy, everything does comes at a price and someone has to pay for it. In this case it was us, the American taxpayer. The $8,000 tax credit worked well and helped many first time buyers buy homes and also kept the inventory levels from getting even higher. Now we just need to find a way keep that positive momentum going.

There will probably be some creative marketing by real estate agencies, banks, and mortgage companies promoting special incentives to keep the home buying ball rolling. I saw an article recently about a real estate company and a mortgage company teaming up in Florida to offer “The Home Buyer Mortgage Credit” to offset the loss of the government program. It touted that that agency’s participating home sellers would be offering 3% of the purchase price back to buyers to be used toward closing cost. Also the mortgage company was reducing its rate by 1% for the first year. I’m not sure that this “Home Buyer Mortgage Credit” is really anything new, but it was packaged to try to create some excitement and interest for potential buyers.

Sellers often agree to pay 3% cash back to the buyer at closing if it is necessary to make a deal happen. That 3% back helps a cash strapped buyer who may have enough money for the down payment but can’t cover his closing costs. Sometimes the seller won’t (or can’t) contribute to the buyer’s closing cost because he needs to recoup a certain amount of money. In those cases the 3% needed by the buyer for closing costs can get added on top of the purchase price as long as the property will appraise at the agreed upon price. In this case the buyer is still paying his closing costs, but he’s paying over time by rolling them into his mortgage.

Home buyers have also always been able to ”buy down” the interest rate on a home mortgage by paying points up front. The mortgage company in Florida says they are paying to reduce the interest rate, but just by 1% and just for one year. That probably costs them around $2,000 which may be money well spent if it creates a lot more sales volume for the lender. However, there is no way to know whether this incentive is a good deal or not until you know what the rate of the loan is and what other fees are associated with the loan. With this, or any program offered, you have to compare it with other lender’s programs to make sure you are getting the best deal possible and that there are no hidden costs. There will be more “incentives” offered in some form or another, but to me the best “incentive” for a buyer is finding a great home at a really great price.

Let’s hope the market will continue to improve over time on its own without the help of tax payer dollars. Artificially stimulating the housing market by providing loans to marginally qualified buyers, then disguising, packaging and reselling the loans to investors who didn’t know what they were buying is what got us into this whole mess to start with. But that’s all old news. Our free market system is generally pretty resilient, so let’s see if buyers and sellers can work out the incentives between themselves without any resuscitation. That’s the way it is supposed to be…

“Ice-Out” on Lake Winnipesaukee was officially declared on Wednesday, March 24, 2010 at 2:00 pm and was the earliest ice out ever recorded. While the global warming advocates will undoubtedly point to rising temperatures caused by increased concentrations of greenhouse gases, I know better. The following statistics will prove beyond a shadow of doubt that the early ice out was caused by an unseasonably hot month of waterfront sales! Well, at least compared to last March when there was only one sale on the Big Lake. We had eight sales on Winnipesaukee with an average sales price of $1,020,675 last month. It was the best March that we have had since way back 2005 when there were 13 sales at an average of $904,308. OK, so March wasn’t blistering hot as far as sales on the lake go, but it is sure better than it was last year.

For details of the above sales click here: Waterfront Sales March 2010

But we are definitely off to a pretty good start in 2010. During the first quarter there were 17 Winnipesaukee waterfront sales at an average of $1.21 million compared to just 6 sales during the first quarter of 2009. The best prior start was in 2007 when there were 25 sales in the first quarter at an average price of $1.75 million. Activity has been pretty strong as far as waterfront inquiries and the number of showings are up as well. As of April 14, there were 230 Winnipesaukee waterfront properties available (including island property) at an average asking price of $1.86 million. Of those, 97 were priced below $1 million and 19 were below $500,000.

The highest sale on Winnipesaukee in March was the property located at 68 Sewall Road  in Wolfeboro which was on the market for $4.9 million and sold at $4.295 million. This is an elegant, vintage waterfront home built in 1903 that has been updated with all new systems. The home has 6,630 square feet of living space, seven bedrooms, eight baths, a grand dining area, a formal living room as well as a family room, and great porches to enjoy the views. There is also a beautiful boat house with guest quarters above. The home sits on a 1.1 acre lot with 247 feet of frontage. This is great waterfront property in a great location in the oldest summer resort town in America! Congratulations to the happy new owner!

There was only one sale on Winnisquam in March and that was at 14  Lakeside Drive  in Belmont.  This property consists of a 1960 vintage main house and separate year round guesthouse on an acre lot with 76 feet of frontage with western exposure. Both structures have been completely remodeled. The main house features an open concept design with cathedral ceilings and features a gourmet kitchen with granite countertops. Great sunset views. This home was on the market for $625,000 and found a new buyer at $605,000

There was also only one sale on Newfound Lake at 311 Deer Path Lane  in Bridgewater. This four room, two bedroom, seasonal cottage was built in 1951 and sits on a half acre lot with 105 feet of frontage. It was originally listed at $625,000, reduced to $549,000 and then sold for $520,000.

So the ice is out, the days are getting warmer, and waterfront buyers are hopefully going to keep the temperature turned up high during the coming sales season! If they keep it up maybe the lake won’t freeze at all next winter…

It is great to finally start reporting increases in the number of residential homes sold in the Lakes Region. Scary, isn’t it? It is hard to get used to and I hope I am not jinxing anything by speaking positively, but things do seem to be improving a little as we head into spring and summer selling seasons. In March 2010 there were 59 homes that changed hands. That is a 31% increase over the 44 posted for March 2009! The average price for the homes sold in March 2010 came in at $272,539 compared to $218,530 last March. There was a little shift in the price range of homes that are selling; last March 41% of the homes that sold were over $200,000 while this March that category increased to 56% of the total sales.

For the first quarter of 2010 there was a 22% increase in sales over the same period last year; from 112 sales up to 137. The average sales price came in at $308,062 for the first quarter of this year compared to $237,480 last year which is almost a 30% increase. As I have stated previously, the increases in the average sales price for homes in the area is reflective of what is selling and should not be misconstrued to mean that home prices themselves are going up. So far this year, 50% of the sales have been over $200,000 and 27% has been over the $300,000 mark. In the first 3 months of 2009, only 39% of the sales were over $200,000 and only 18% of the sales were over $300,000. An increase in sales of the mid to higher priced homes would be very welcome.

On a rolling 12 month basis (for the year ending March 31, 2010) total sales were up about 12% compared to the 12 month period ending March 31, 2009. The average price was down slightly at $302,071 compared to $329,120 for the prior year, but that will improve if the upward trend in sales of higher priced homes over the past several months continues. We hope.

There appeared to be some pretty good deals last month. For example, a 1910 vintage 7 room, 3 bedroom, 1½ bath, cape style home on 1.74 acres at 6 Singing Eagle Lane in Center Harbor was offered at $99,900 and sold above the asking price for $116,000. That was still only 49% of the assessed value of $237,200! Another great buy was found at 210 White Oaks Road in Laconia. This home has 2,162 square feet of living space, 3 bedrooms, 1½ baths, hardwood floors, a brick fireplace and lots of 1950’s character. It was offered at $139,900 and sold for only $115,000 which was 52% of assessed value. There were some good buys on waterfront property as well. A year round cottage at 115 Kimball Drive in Moultonborough with 33 feet of frontage in Hermit Cove on Winnipesaukeewas offered at $349,900 and sold for $300,500 (or 66% of the town’s current tax assessment). It just goes to show that great affordability and value can be found on the big lake.

There were no sales over $1 million this month which is a little unusual, so the honors for the largest sale this month go to the waterfront property at 69 Sawmill Brook Rd in Alton. This very nice 1,875 square foot year round, 3 bedroom lake home built in 2006 on a level half acre lot with 100 feet of frontage, sandy beach, and U shaped dock. The home features floor to ceiling living room windows with 180 degree views of the lake, gas fireplace, bamboo flooring throughout, state of the art kitchen, and a 2 car garage. It was offered at $849,000 and sold for $790,000. Unlike the homes above, this home sold at well above its tax assessment of $614,000. That doesn’t mean that this buyer paid too much for the property or that he didn’t get a good deal. Many fine properties sell for over their assessed value and they can still be a great deal (as I suspect this home was). Condition, location, functionality, amenities, and even some intangible qualities all play a role in whether a property provides the value that a buyer is looking for and makes that special property a good deal for him.

April showers bring May flowers and more real estate listings, but the unseasonably warm and sunny days have also brought out the buyers. Let’s hope they actually buy something! The number of single family homes in the towns in this Lakes Region report jumped from 993 last month to 1070 as of April 1. That number is also up compared to the 1000 homes listed as of April 1, 2009. Based on the number of homes sold in the last 12 months, this total is equivalent to 17 months worth of inventory. We are fortunate to have a good mix of properties and great offerings in every price range and with 28% of the listings priced under $200k there are a lot of affordable homes on the market.

For those following the lake front listings, there are 211 homes available on Lake Winnipesaukee (including island property as of April 3) with an average asking price of $1.85 million. A little under half of these listings are on the market for less than $1 million. Over on Lake Winnisquam there are 18 waterfronts available with an average asking price of $650,833. I’ve read several articles lately that say vacation and luxury homes sales are rebounding in many parts of the country so let’s hope for a great summer here as well.

The wonderful world of real estate is a very challenging place right now to say the least, for buyers, sellers, lenders, and REALTORS® alike. It seems like the normal hurdles that we face in every transaction have become magnified because we just don’t get as many offers on homes as we used to. The biggest hurdle may be getting a showing on a property. Stress levels have increased for sellers in particular (real estate agents have always had to go for therapy) and buyers seem to enjoy tormenting them with the ever popular “low ball offer”. But, in some circumstance, sellers should think very seriously about your first lowball offer!

So what is a “low ball offer”? Well, it can be viewed differently depending on your perspective on the matter. Assuming we are talking about a seller, let’s see if we can make some sense out of it. Let’s say you have been trying to sell your home for $359,00. Mr. Seller’s property is very, very nice and he has remodeled every square inch with the highest quality materials, replaced all the systems, and made it the best and most unique domicile on the planet (his agent knows all of this because Mr. Seller has told him ten times). It has been on the market for 237 days, but Mr. Seller has also had it listed before with two other agencies for a little over $400,000. Despite the fact that there have been two homes sold in town for $325,000 that were pretty similar and every bit as nice Mr. Seller’s, he is standing firm on the conviction that his home is worth more because, well…because he says so and the price is the price. Remember when you were a little kid playing baseball? Seems like the worst player was always stuck way out in right field. That’s where Mr. Seller is…

But Mr. Seller’s home really does show beautifully and after the third showing on it (yup, three showings in 237 days—pretty good right?), he gets an offer. It is a solid deal with standard contingencies and good buyer. But the buyer, through his very astute Buyer’s Agent, makes the offer at $310,000. You see, the buyer’s agent did his homework. He saw the two recently sold properties for $325,000 and also observed that Mr. Seller’s home was assessed for $315,000. To the buyer, this is not a “low ball offer”, but the right offer. To Mr. Seller, it was time for a tantrum, a token small counter offer, and then a rejection of the deal. To use another baseball analogy the offer was not low, it was really in the strike zone

Just like on ABC”s “Flash Forward” (where everyone on earth got a glimpse of their future) Mr. Seller saw that he would receive another offer. But he didn’t see how much the offer was for. Six months later, after considerable badgering by Mrs. Seller and his agent, he lowers his price to $329,000. He really didn’t want to lower his asking price, but his wife assured him that in his next Flash Forward he wouldn’t see anything except darkness. She had seen Florida in hers. Just like in the Flash Forward, he receives another offer. But this new offer for $250,000 is from a buyer that had been in town for a week and was looking for a deal on anything he could find that he could buy at a bargain price. This was a true “low ball offer”. I suspect Mr. Seller would jump at the first “low ball” offer if he could do it all over again.

If you are selling your home don’t go ballistic if you receive what you perceive to be “low ball” offer. Take time to really think about it, look at comparable sales, and talk with your agent. Someone might be trying to tell you something, particularly if your home has been for sale for the better part of this decade. It may not really be a low ball offer. It may be a reasonable offer. The moral of the story is; don’t get caught standing in right field in this housing market or its going to be a long game with extra innings and you are likely to lose in the end…