Glen Canyon Arizona by Wolfgang Staudt, on Flickr
So I thought we would weigh in on this for our 4 or so readers and I am here to tell ya… yeah, it’s happening, and in a big way. Surprisingly, with all we have been through in the last three years, sellers still have expectations that they are going to come out ahead even though we are hearing appraisers are still adjusting down in anticipation of a further declining market. Buyers, on the other hand, feel like they are catching a falling rock and want to make sure to mitigate potential losses. It results in a stalemate.
For buyers, in many cases, it’s no big deal. There is plenty of inventory out there and eventually a seller will come along who is desperate or more likely, reasonable. Buyers, after losing a few opportunities, eventually become reasonable too. My only word of warning is… if you find a really special house, like this one, don’t wait. Like Redfin, we are seeing buyers sitting on the fence, watching a particular house like a hawk, not wanting to make the first move. Problem is, if the house is cool enough, somebody will eventually make a run at it and then everyone rushes to the table and a bidding war ensues.
Been there…done that. Great for the seller, sucks for the buyer(s).
For sellers, I have a different tale of woe. Lately, I have heard story after story from sellers who received an initial offer they thought was too low, buyer went away and several months and price reductions later, end up accepting an offer much lower than the first one and kicking themselves the entire way to the closing table. The message here…if you have a bird in hand, be reasonable, listen to your agent (you hired them for this purpose, remember?) and try not to get hung up on recouping your investment.
The take-way..the market is what it is, you either accept it for what it is and deal accordingly or you wait it out.
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