Sometimes you just have to laugh! How many times in the past two and one half years have we heard "it's a buyer's market"? More times than I can count and yes, it is true. But what exactly does that mean?? In a recent conversation with one of my buyer clients I discovered his definition of a buyer's market meant the seller should accept any "low ball" price he offers and agree to all concessions. Plus, his real estate agent (me) should feel "special" at the opportunity to present the ridiculously low offer. This is where I have to laugh!
As much as buyers would like to believe this is what defines a buyers market the reality is quite different. A buyer's market simply means there is more available real estate inventory than there is demand. And at the present time the housing market is saturated with property. In Chowan county there are 229 properties/ houses on the market with only 5 closings in the month of August. At this rate we have enough inventory for the next 3.8 years!
Now, I also have to admit that in light of this fact many sellers are willing to settle for a lower bottom line than they would have a year ago. And some are even willing to make some pretty good concessions. But this is by no means an across the board phenomenon. Each situation is unique and depends on the individual situation of the seller, their motivation and their expenses. Some sellers are content to leave their house on the market until they get the price they want. Others are saying, "Bring me an offer, any offer." And still others are willing to go lower than what they had thought when the house was listed yet, still have a firm bottom line. Most will make "reasonable" concessions.
It takes skill and tact on the part of the Reatlor to advise his/ her client as to what the opening offer should be and why. It takes some trust on the part of the buyer/ client to listen to and accept the advice of their agent. After all this is what we do for a living and we are immersed in the market day after day so we naturally know how far below list price the normal person will go.
Bottom line: it is a buyer's market but that does not mean anything goes!
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