I was contemplating how difficult some buyers are in the market right now - so demanding and so in search of the "great deal" that they miss terrific opportunities on homes for sale because they have these preconceived notions that they want a certain percentage off the price and all repairs taken care of from the home inspection. Then I read J. Philip Faranda's post, Why Tons of Buyers Are Screwing Up. It is very indicative of today's market and right along the lines of what we see going on with buyers today.
Now anyone can argue that sellers are no better. We have seen the days when houses were flying off the market with each sale in a neighborhood out doing the previous one in terms of price and what types of conditions buyers were willing to accept. Sellers had the position of power and typically had several offers to consider. Some sellers were downright cocky and arrogant.
In recent years, some sellers have been very foolish and cannot let go of the "appraised" value when they refinanced in 2005 or how their neighbor sold in 2006 for thousands more than what is currently being recommended to them as a list price.
But now the turnaround. For the most part, sellers have accepted that they are not going to sell for what they could have sold for a few years ago (even a few months ago). Some buyers today have turned cocky and arrogant. They are so busy listening to the news, their friends and families and hearing about the "steals" out there with short sales and foreclosures, they are missing out on great homes at great prices with unbelievably low interest rates.
We have found a tactic very useful recently. If we have a listing and we know it is priced well and the seller has made the appropriate concessions regarding condition but we cannot come to terms on price with a buyer, we very politely tell the buyer's agent, "Go ahead and look at more homes, let us know when your buyers want to be reasonable with their offer." Our last three listings sold to the very buyers who put in their unreasonable offers, it just took two to three weeks each to get through the negotiations on price and terms. Sometimes it gets down to arguing over a refrigerator. Can anyone spell exhausting?
Every aspect of a real estate transaction these days is harder than ever. Roadblocks are continuously being thrown up by not only sellers and buyers, but mortgage companies, appraisers, inspectors, and homeowner associations. And from what we see, negotiations on price and terms that used to take a day or two to get through are now taking a week or two, sometimes three. But if you have the sellers these days and want to get them the best price and terms, be prepared for some long rounds at the negotiation table.
Keeping sellers calm and everyone engaged is the hardest part. But when you know you have a good hand (a.k.a. a reasonable seller and a good house), you have to play hard for your seller's sake.
~Lisa
Contact Scott Loper, Associate Broker, Realtor®, RE/MAX Realty Group at 215-513-1333 for help buying or selling a home in Lansdale, Harleysville, Hatfield, Souderton, Skippack, Collegeville, North Wales and the surrounding areas of Montgomery and Bucks Counties of Pennsylvania. To Search for Homes For Sale in Montgomery County Click Here.
Know When to Hold Em; Know When to Fold Em Copyright © 2010, The Scott Loper Team, All rights reserved.
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The Scott Loper Team
Scott Loper - Associate Broker
Lisa Loper - Sales Associate
Gina Wherry - Sales Associate
RE/MAX Realty Group
439 Main Street
Harleysville, PA 19438
Ph: 215-256-1200 x-213
