As a broker and agent, I have always had the following two mantras:
1. Every deal is precious
2. If you’re a seller, be a seller; if you’re a buyer, be a buyer.
On the seller side, this means that if you have a bone fide, qualified purchaser, then do what you can to close the deal, and if you are a buyer, this means to move without delay if you desire a particular property, assuming the price is acceptable. Of course, seller and buyer psychology varies greatly depending on the nature of the market (bull – seller market, bear – buyers market).
Currently we are in a real bear market, so sellers need to “get real” on price. Too many sellers, who really need to sell, talk tough and hold onto an unrealistic dream about the value of their property, only to become desperate (either psychologically, financially or both) and sell their property at an even greater discount than if they had been realistic from the outset. So their dream becomes a nightmare for them, because they did not get real with their price until it was too late.
At some point, many sellers who cannot unload a property (at their desired price) will reach a point where they simply must sell financially. This is a clear-cut signal that price must be reduced to achieve a sale. Others will find that, at some point, the psychological burden of carrying a property outweighs the financial burden. For example, “the pool pump keeps breaking, it never gets fixed properly, and I don’t even use that property any more” is about the hassle and not just the cost. For those psychologically stressed property owners, who have attachments to balance sheet values, which are often inflated, it takes some self-knowledge to finally own up to the fact that the property in question is not bringing either financial or psychological gain into their lives and the question then becomes, “How much of a hit am I willing to take?” And, in the current market the hit is often greater than a simple “haircut”. Losses are tough to take, but we all must take them from time to time in a life that is full of gain and loss. Sometimes, if the ship is weighed down or sinking, some gold has to be thrown overboard to right the ship.
So sellers, take stock, and do some soul searching. If you need to sell, or really want to sell, then you should price to sell. Otherwise, it might be best to just wait out the market, especially if you can enjoy use of your property. On the buyer side, many sellers have already come to the aforementioned realization, and there are some of the best buys in TCI market available since 2003. So my advice would be to make your move on a well priced property to your liking, as those well priced quality properties are already starting to move.
I hope you have enjoyed my first blog. I have learned a lot through 20+ years in the TCI market, and I look forward to sharing what I have learned with you in future blogs as we work together towards a healthier and more vibrant market place.
Take it from a fool who knows…
Turks & Caicos Real Estate | Caribbean 