I have 2 buyers who have made reasonable offers on homes within the last 2 weeks. Did they offer full price, no, because the comps indicated the sellers were listed higher than they should be. Neither offer was accepted. And guess what... the homes are still available.
First time buyers accounted for almost 50% of home sales last year. I am sure the data for Q1 of this year will indicate the same thing. Appraisals are tighter than ever. Why do sellers think they are going to get thousands of dollars more than if the tax credit was not in effect?!?
I strongly urge my buyers not to offer what the seller is asking, but instead offer what the comparable properties have sold for. I also do this because I really don't want to have to try to renegotiate at the closing table if there is an appraisal issue. Because either the buyer is going to have to walk away and lose $8,000, or the seller is going to have to come down and I know how hard nosed sellers can be once they start spending that money in their heads.
The reality is, we can avoid that scenario if we will just work off the comps. Sellers are being greedy, and its going to bite them in the rear if they really are needing to sell their home right now.
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