We have seen it more than once over the past few months--buyers making a grave error that costs them a lot of money and time. It's not their fault... really. They are merely victims of pop-media coverage. They are told over and over and over again that this is a buyers market and they can and should get GREAT deals. These GREAT deals are described as paying far less than the asking price for the property.
So just what's the problem here? What is the mistake?
They don't factor in the fact that NOT ALL listings are over-priced and they lose their opportunity to purchase the home they want at a very good and fair price!
Certainly when the market was shifting from a strong sellers market to a buyers market many sellers were behind the curve. This trend continued and is still happening but not at the same level it once was. Most agents and many sellers now recognize the REALITY of the real estate market and are pricing homes accordingly--that is, they are pricing at fair market value or slightly below fair market value in order to 'stand out' and sell quickly.
The uninformed (or stubborn) buyer comes along and automatically offers a much lower price and unrealistic add-ons and addendums. The seller knows his property is priced right so he holds firm or makes minor concessions just to show good faith in negotiating. He has personally visited the competing properties with his agent and knows that he has the best value in the area. But the buyer listens to the pop-media and refuses to pay the fair price.
Now the buyer moves on to the next property on his 'want list' and tries the same thing... eventually he gets to a seller who IS overpriced and IS willing to make the reduction and concessions and the contract is completed...
BUT now the buyer has his 3rd, 4th or maybe 10th choice and ends up paying the same amount (or nearly the same) as he could have on his number one choice.
Our advice to the buyer is to get with your agent, look closely at the comparable sold and pending sale properties and then at the available active properties. If your number one choice is priced right then BUY IT... in short time you'll be so glad you did!