So now the buyers are playing the wait and see game. they don't want to miss a good home and they also want to wait until the bottom reaches on the market place. Where is that?
just in the Prescott area I am seeing price reductions everyday. What I have noticed is the homes are dropping playing the stair case game. So sellers you must ask yourself do you want to drop to each stair before or after someone else does. Here are the options drop first and try and get your home under contract before the other seller drops his? then there is the ooooooooooops the home down the strret dropped the price and got their home in contract. Better hurry and get our home on the market, darn it is to late someone else just dropped theirs and got an offer. So sellers where do you want to be?
Buyers have to make a choice on when to offer now or in a couple of months. If you make an offer now you can always make a little bit lower offer and see what the motivation of the seller is, or wait and maybe see the home you want sell. The choice of course is always yours.
Land sellers need to look at the home sales around them to get realigned to home selling prices. The best way for a investor or spec builder to make some money is buying the land right. They typically look in the 20%-25% LTV of land to home. With that being said if you have your lot listed for $100,000 then look around at the homes for sale and check the 20% rule. Maybe you will get your land prices in order.
The big boom has been over for awhile, now is the time to ask yourself "Do I want to sell now or later"...?
Ken Nimmo
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An interesting discussion. Perhaps it all depends on the motivation and what is planned next on their agenda. Part of the value they might have already received , depended on a previous motivation and decision. When things change, so does the potential value of possession.
I have had some Buyers that I counseled over the years make really decisions and have created a lot of wealth in doing so. The caution is make the right decisions at the right time and market fluctuations can be a real opportunity. It is a matter perspective and a constant relearning for the owners. Nothing ever stays the same and with each change is new opportunity.
A very good post and one that people need to read.