The Starbucks run

So it was my wife's birthday. Among the many other things I was doing for her, I offered to make a trip to Starbucks and bring her some coffee at work. Well, if only it were that simple. Of course there were 2 or 3 co-workers that she wanted to get one for and then the wild card recipients. Our friend in the front office who has been hinting for months about bringing her coffee and then another friend of ours that works in the same office area. And then...well I guess that is my point, where do you stop? I mean, who can refuse a coffee delivered to them? You have probably heard it, "I'm going to Starbucks, anybody want anything?" Of course I want something! Or the "I wish I had know you were going to Starbucks!" Fortunately, my guilt is minimized by my order, which is simply...a coffee. Which, by the way, is not that expensive. However, some orders are not only impossible to remember and embarrassing to order, but are also high dollar! And then there is that required art of ordering. "I'll have a tapayoca, frap, caramel swirl, double shot vente...skinny!" I know there is no such drink, actually I don't, but it sometimes seems like I am behind a cook telling a recipe instead of a person ordering coffee. And what is really amazing is that the person behind the counter takes it down and does not skip a beat.

So I got 4 grande lattes and a grande coffee, dropped one latte off at the front desk and took the others back to the office where my wife was, kissed her and left. My birthday deed fulfilled!

I'll take a tall coffee, here's 2 bucks. Thanks alot!

Seller mindset- Holding out for less money!

Well it has been a while...but I won't linger on that.

If you are selling a home, decide on the lowest price you would take for your house and list it at that price. See what happens. If you get a low ball offer, counter at your price. If you get an offer a day after you are on market, counter at your price. However, if you still do not get anyone to look at your house, or you don't get any offers...then welcome to the reality of the real estate market in 2007!

If you want to sell your home, notice I did not say make a bunch of money on your home, then pay attention to the SOLD comparitives in your area. Do not focus on the LISTING prices. Believe it or not, appraisals are a factor these days. If you get an offer on your home and the sales comparitives do not support that price, then you have a problem.

Another exercise for pricing. Take what you bought your house for and calculate a 7% annualized gain over the time that you have owned it. You can use the calculators at interest.com for this. Let us say you bought your home for $200,000.00, 10 years ago. Using the CD interest calculator for $200k, 120 months and 7% you get that, under normal real estate appreciation, your home is worth about $402,000.00. If the sales comparitives are around this figure, then price your home at $399,000.00 and see what happens.

Many people are setting a high price and waiting, believing that they are holding out for more money. I believe that in reality, they are holding out for less money. I have been watching a listing that started out at $900,000.00 two years ago. It is still on the market and listed at $750,000.00. Would it have sold for $750,000.00 two years ago? No one knows but in all likelyhood, yes! So $250,000.00 for two years- to service this debt at 6% is about $1,500.00 per month, the interest that could be earned on this money at 5% is about $1,000.00 per month for a total of about $2,500.00 per month. Over two years time, this has cost this owner about $60,000.00. So if he sold it today at $750k, he would be netting $690k if the lost revenue and debt servicing are figured in. The thing about it, the house is not going to appraise at $750k today so the loss is even going to be greater.

If you want to sell your house, price it correctly to start with and don't hold out for less money.