Jan Skrentny

Yesterday I went on a listing appointment for two homes; one near the the golf course the other in a very desirable area just off the lake called Shelter Cove.

It’s hard to tell owners who have beautiful homes that they have recently remodeled and taken excellent care of that their homes are worth less than they paid for them in 2005.

Fortunately for the Lake Arrowhead area the price decline has not been as great as in the Inland Empire or in Southern California in general. Our inventory is larger than normal but not glutted; our market is not riddled with bank owned properties or short-sales. 

Still, after all the fees are sorted out (commissions, inspections, cost of sale expenses) they will lose money. These two parties were aware of the market and knew that they had to price their houses well so as to not be “chasing the market” (i.e. pricing too high to begin with and only dropping price as the market drops – effectively always chasing the real value of the property).

My best advice to sellers in this market is “don’t sell.” But if you have to (to relocate, for health reasons, job transfer, etc.) tell your agent you want a price your house so that it will sell.

Too often agents will seduce sellers by telling them their houses are worth far more than they really are. The agent gets the listing and in a month asks for a price reduction. The next month or two there is another reduction. And then another. The seller is always chasing the market.The best way to know what your house  is really worth? Ask the agent to show you well priced houses in your price range. Then ask to see them. You compare. How do these houses stand up to yours? In curb appeal, location, size, quality of construction, maintenance. These houses are your competition. Have your agent evaluate these other houses with your house – the pros and cons or each and how it factors into the pricing.

Don’t get trapped in chasing the market, it’s a great waste of time and value.

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