I've seen more and more blogs and comments over the past weeks that highlight a double-edged phenomena that might just be a natural phase of a declining real estate market with widely varying predictions of an upswing. 

On the seller's side, we have the natural reluctance for owners to face reality and set the right price from the outset or lower the price when necessary.  I hear the frequent appeal, "but my house is unique" in this or that respect.  These appeals need to be addressed by Realtors.  If the home is in fact unique, it is certainly our job to recognize or indentify that fact and find creative ways to both market that uniqueness and translate it into something a bank appraisal will recognize.  But in the final analysis, in addition to a good comparable market analysis, letting the seller know that unless a cash offer is made, a lender's appraisal will control, may be one of the most effective ways to help your selling client face reality.

On the other side, there may be more buyers out there than current inventories would suggest.  But I meet many who seem to be convinced that the real estate market is collapsing and will only propose very low offers convinced that the seller is, or should be, in a panic mode.  Some "low-ballers" have legitimate concerns, a fear that they may be buying into a community which will lead to a loss if they are forced for some reason to sell that property in the relative short-term.  In either case, I see many buyers missing out on real opportunities in this market that may in fact never come again.  One of our roles as Realtors, despite the many unknowns in this type of market, is to understand all of the critical factors that come to bear on the appreciative value of a given community and to effectively communicate this to clients.

Bridging this gap can be difficult because it is hard to predict just how far things may head in one direction before turning around.  The market conditions we see today are, in many respects, unlike any most of us have ever seen.  But I try to keep coming back to a few basic judgments I have made in helping both sides bridge this gap.  First, in my market, the Lowcountry of South Carolina, prices have truly declined and sellers need to understand this point at the outset.  If this fact is ignored, a price will be paid if there are more declines.  On the buyer side, the sky is not falling and buyers need to recognize that the deals available today are better than anyone would have dreamed of two years ago.  Certainly, there is always the chance that better ones may be available down the road but factoring this into an offer now may be something that is regretted later.  I am certain that someday many people will look back on this specific time and recognize that greed cost them a wonderful opportunity.  A reasonable price in today's market will almost certainly make for a good long term investment.