{"id":4872,"date":"2008-10-09T15:53:31","date_gmt":"2008-10-09T22:53:31","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=4872"},"modified":"2008-10-09T15:53:31","modified_gmt":"2008-10-09T22:53:31","slug":"should-walmart-sell-real-estate","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4872\/should-walmart-sell-real-estate\/","title":{"rendered":"Should Walmart Sell Real Estate?"},"content":{"rendered":"

It appears that Coldwell Banker may be following the Walmart approach to real estate pricing<\/a> – recommending that sellers cut their home prices 10% across the board – not locally, but nationwide.\u00a0 I can’t help but find the similarity to the McCain approach to cut government spending – simply freeze spending across the board.<\/p>\n

Shouldn’t price cutting be done with a scalpel-ly machete?\u00a0\u00a0 Pardon the pun, but in many cases 10% doesn’t cut it.<\/p>\n

I had a very difficult discussion today with the developer whom I represent regarding a new and very aggressive pricing strategy for their condominium project slated to deliver just about when the snow flies.<\/p>\n

New lending guidelines regarding new construction could potentially crush them – even with units under contract, no potential buyer can close without at least 51% of the units being under contract – we’re not even close.\u00a0 While Chicago may be a stable market per Fannie Mae guidelines, in light of the recent Wall Street meltdowns, I suspect the we may be in a declining market faster than you can say bailout.<\/p>\n

If they don’t get aggressive quickly, we as taxpayers may just be owning 8 stunning, uniquely contemporary condos.\u00a0 My recommendation was a bit more dramatic – depending upon the units, as much as a 15% price cut.\u00a0 They didn’t take it well.\u00a0 They “hoped” to get the prices we had established – they forgot the second half of the word\u00a0 – “less”.\u00a0 The good new is – we have time to thoughtfully approach the pricing strategy.<\/p>\n

If we aren’t having the tough conversation with our sellers regarding pricing – okay, I’m going to go there – aren’t we like Congress, complicit in extending this housing market nightmare by not doing what we’re paid to do – provide knowledge, expertise and guidance?\u00a0 While I can’t completely fault the strategy that Coldwell Banker wants to deploy, where did 10% come from exactly?<\/p>\n

As far as I’m concerned regarding my own client’s situation, the comps matter significantly less than current lending guidelines do.\u00a0 If mortgage money for conforming loans is still relatively plentiful to the well-qualified buyer, my client’s units need Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

It appears that Coldwell Banker may be following the Walmart approach to real estate pricing – recommending that sellers cut their home prices 10% across the board – not locally, but nationwide.\u00a0 I can’t help but find the similarity to the McCain approach to cut government spending – simply freeze spending across the board. Shouldn’t […]<\/p>\n","protected":false},"author":47,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[29,26,5],"tags":[537,532],"class_list":{"0":"post-4872","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-group-therapy","7":"category-lending","8":"category-real-estate","9":"tag-lending","10":"tag-real-estate","12":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":1944,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1944\/federal-funds-rate-cut-by-a-half-point\/","url_meta":{"origin":4872,"position":0},"title":"Federal funds rate cut by a half-point","author":"Greg Swann","date":"September 18, 2007","format":false,"excerpt":"Here:The Federal Open Market Committee cut its benchmark federal funds rate by a half percentage point to 4.75%. In an effort to ease the credit crunch, the Federal Reserve also reduced its discount rate in lockstep to 5.25%. This is the first cut in the federal funds rate since June\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1947,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1947\/wall-street-fed-cut-sittin-in-a-tree\/","url_meta":{"origin":4872,"position":1},"title":"Wall Street & Fed Cut Sittin’ in a Tree…","author":"Lani Anglin","date":"September 18, 2007","format":false,"excerpt":"I know Jeff's working on a whopper of an article to follow up on his last gem; what do YOU think of the rate cuts? \u00a0 \u00a0","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":5011,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/5011\/peter-schiff-our-leaders-irrationally-promoted-home-buying-discouraged-savings-and-recklessly-encouraged-borrowing-and-lending-which-together-undermined-our-markets\/","url_meta":{"origin":4872,"position":2},"title":"Peter Schiff: “Our leaders irrationally promoted home-buying, discouraged savings, and recklessly encouraged borrowing and lending, which together undermined our markets”","author":"Greg Swann","date":"October 16, 2008","format":false,"excerpt":"Peter Schiff in the Washington Post:Amid the chaos of recent days, as the federal government has taken gargantuan steps to stabilize the financial markets, realigning the U.S. economic system in the process, comes a nearly universal consensus: This crisis resulted from government reluctance to regulate the unbridled greed of Wall\u2026","rel":"","context":"In "Big Mother"","block_context":{"text":"Big Mother","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/big-mother\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1192,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1192\/who-should-care-about-tighter-lending-guidelines\/","url_meta":{"origin":4872,"position":3},"title":"Who should care about tighter lending guidelines?","author":"Greg Swann","date":"March 22, 2007","format":false,"excerpt":"You should. Why? For one thing, this may be the year of the landlord. Tom Royce at The Real Estate Bloggers cites Michael Cook's investing posts. I would draw your attention to Jeff Brown's investment advice as well. This might be your year to pick up a few buy-and-hold rentals\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1794,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1794\/congressional-leadership-on-lending-policies-what-is-crisis-itis\/","url_meta":{"origin":4872,"position":4},"title":"Congressional “leadership” on lending policies: What is “crisis-itis?”","author":"Greg Swann","date":"August 13, 2007","format":false,"excerpt":"The Conspiracy to Keep You Poor and Stupid, which should be in your feed-reader -- especially right now:What is \u201ccrisis-itis?\u201d It is my own diagnosis. It is a form of dementia where the inflicted believes his or her own self worth rises as the situation he monitors worsens. In all\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":10856,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10856\/2010-mortgage-broker-renaissance\/","url_meta":{"origin":4872,"position":5},"title":"2010 Mortgage Broker Renaissance","author":"Brian Brady","date":"January 14, 2010","format":false,"excerpt":"Is the business of broking mortgage loans dead?\u00a0 About two years ago, Morgan Brown predicted our demise on Blown Mortgage.\u00a0 His conclusion was that the industry would need a scapegoat for the poor lending practices and that \"blaming\" mortgage brokers was convenient (and not necessarily fair).\u00a0 His conclusion suggested that\u2026","rel":"","context":"In "Big Mother"","block_context":{"text":"Big Mother","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/big-mother\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/4872","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/47"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=4872"}],"version-history":[{"count":1,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/4872\/revisions"}],"predecessor-version":[{"id":4873,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/4872\/revisions\/4873"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=4872"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=4872"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=4872"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}