It’s safe to say that there has never been a bigger chasm between seller and buyer than what we are experiencing right now. Sellers are getting offers anywhere from 10K off their asking price to several hundred thousand dollars off their asking price. So where is the disconnection and who is right in this real estate market? Let’s consider a few points.
First, most buyers would say that the sellers are just not being realistic in their asking price. I would say that this is a fair statement for some, but no all. Over the last year, sellers have seen the news, got the point, and started pricing their homes more within the going market value. Are there still several people hoping to sell overpriced homes? You bet. If your home is overpriced, you have two simple decisions here: A) Lower the price to make your home a value or B) Continue to show it for the next year or two, make the mortgage payments, and hope it sells.
Ok, now let’s look at the buyers. In a previous column last month, I said that the first sentence out of every buyer’s mouth these days is, “I want a deal.” Are buyers looking to steal a home? Yes. Will they? Sometimes they will. Is it right? No, but it won’t be a buyers’ market for ever. For instance, in the 250K and below market, some buyers are being forced to participate in a bidding war. This is a sign that the market is slowly changing. For the rest of the price points, buyers are still in the driver’s seat and let’s remember that a buyer gets to set the price of homes, not the sellers. So for now, let’s expect that buyers are going to be making low ball offers.
So what do we glean from this? First and foremost, if you do not have to sell your home or you are not very motivated then do not put it on the market. If you do need to sell, be ahead of the curve and price that home to move quickly. If you are a buyer, take advantage of this now. The chasm between buyers and sellers is closing fast.
Dan Polimino is a Realtor with Fuller Sotheby’s International Realty. He can be reached at DPolimino@fullerproperties.com and www.CoDreamHouse.com
