Managing Expectations

Expectations

I’ve always heard that the single most important thing that we do as agents is to establish expectations. At the end of the day I think that’s about 90% of the job. Of course that means telling the truth. A lot. What’s also really important is knowing what the truth is! Weird idea, huh?

Nothing I hate worse that being exposed as being wrong, but that’s life. Given enough time and I’ll be wrong about something. Of that fact, I know I’m right. There’s two things I know right now to be true about real estate. 1) It’s kind of slow if you’re a seller. It would be unwise to bank on the idea of multiple offers. The odds don’t favor you actually. Right now at least. I had a really close friend of mine text me last week to ask me if her house is worth $2,500,000. That was her sincere expectation. I almost passed out when I read the text! Then she said…”but at least $2,250,000…right?” The comps are actually about $1,800,000 for her type place…and fat overbids aren’t happening. I know this is kind of a tough pill to swallow because sellers seem to feel like it’s a birthright or something to get $200,000 over asking for their places. If you’re thinking about listing your place between now and the first of the year you should be ready to a slower process. Maybe you’ll still get multiple offers, who knows, but I wouldn’t expect it.

The second thing that I know to be true is this…this is a pretty seriously healthy market and will continue to be. Right now today in this horrifying slow spell there’s only 7 single family houses on the market in Foster City and 14 condo/townhouses. That’s really no different than it was in May. Sorry, but there’s more than 21 set of people who want to live in Foster City. If it takes a bit longer that’s OK. These places will sell. Also, all those jobs haven’t disappeared. All that construction you see is real. That growth we always hear about isn’t a fantasy around here. Oh, yes…rents are still pretty freaking high.

Maybe I’m in denial, but I think this fall is an aberration. Maybe it doesn’t go up 25% in the first quarter again…but it’s going to be fine in 2016. Our investments in real estate around here are about as solid as they can be.

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