She Works Hard For Her Money

Posted by: Chris Palmeri on June 2, 2008

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Reporting a recent story on how Realtors are coping with the housing slump, Ardell DellaLoggio, a broker in Seattle, told me one of the big changes is how much more work it now takes to close a home.

“It takes ten times as long to do to the same sale as two years ago,” she says. “In a hot market you’ve got two or three bidders. You didn’t have to deal with inspections in a normal manner.” In the past, she said buyers would forget about minor issues that popped up during inspections. In really hot markets, buyers would sometimes waive their right to inspect the property and ask sellers for concessions if major problems were discovered.

Now, DellaLoggio says, “it’s like a second round of price negotiation.” Buyers are now trying to chop tens of thousands of dollars off the already-agreed-upon price. And agents such as DellaLoggio have to go over inspection reports line by line, giving the seller’s responses. “This is the kind of work you need to do now to keep a sale in play,” she says. Here’s a link to her own blog.

Reader Comments

lizziebeth

June 6, 2008 8:30 AM

What a whiner! I've bought and sold 11 homes over the past 18 years and it's always been that way. The buyer wants to get everything they can for as little money as they can. That's why selling and buying a house is so stressful. That's why people turned to realtors to help them through the emotional process. People don't need some realtor to show their home as if they were at a car show. They need someone to deal with the tough negotiations. She must have just entered the real estate profession. If real estate was as easy as it's been over recent years, everyone would be a realtor. Oh yeah, maybe it was the easy money of the bubble that caused so many to enter the profession. POP, POP, POP!

ARDELL

July 10, 2008 6:38 PM

It appears that Lizziebeth likes to call eveyrone a whiner :)

I started in real estate in 1990 Lizziebeth, and it was just as hard then as it is now. In between it was easier.

When someone is reporting that "the change" in the market is that it is going from easy to hard, harder, hardest it is about changing market conditions, not about "whining".

It is very important for sellers to know that if they get a buyer, and they agree on sale price, etc, they can lose that buyer quite easily at time of inspection, if they are not very careful.

lizziebeth

July 12, 2008 7:39 AM

No, I don't call everyone a whiner, just realtors who feel the need to complain about how hard they have to work. Especially after a real estate market that any Tom, Dick or Harry could make a quick buck. One that has left those of us who work hard, save money, buy houses we can actually afford...stuck paying for the mess the NAR has left us with.

Most markets have required realtors for years to do what you are having to do. Welcome to the world of Newton, what goes up, must come down.

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About

BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.

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