A year or so ago, it seemed that the news sources blasted headlines about real estate conditions being favorable to buyers. It would be interesting to hear from today's buyers about their read on the current situation. Of course, like all real estate markets, he who has the upper hand may depend upon location.
Here in the Tri-Valley of California (Dublin, Livermore, Pleasanton) it also depends upon your price range. Buyers today are encountering quite a different picture than the one painted by the national news headlines not too many months ago. When inventories were high and listings languished on the market for months, buyers could certainly take their time looking at a number of properties and usually work through negotiations with the seller, even if that seller was the bank.
Now however, many buyers are experiencing a whole different ballgame. There are far more buyers than houses in certain locations and price ranges. A buyer that hasn't been prequalified can find themselves unprepared to compete in multiple offer situations. Sellers of bank owned properties usually require that the buyer submits a pre-approval letter and proof of funds with their offer, and often times want that approval to come from a lender of their choosing.
And regular sellers, nervous about the buyer's ability to obtain a loan are also asking for that same assurance. Deadline dates for offer submission or specific instructions for writing offers are showing up more on the MLS. That would certainly indicate that we've had a shift of power in the buying and selling of property.
As inventory gets scooped up, the drop in active listings puts the laws of supply and demand front and center. Buyers who have been actively looking and offering, without results sometimes conclude that price alone is no longer their only motivator. Perhaps they've taken their turn submitting offers on short sales without confirmation after months and months or have been put off by the complex counter offers issued by the banks. Most buyers who have experienced the uncertainty of offers on short sales and bank-owned houses would welcome the chance to purchase an owner-occupied, well-cared for home at market price.
What has been your experience?
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