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The "Dead Market"

By
Real Estate Agent with Sarasota Realty Associates SL3190452

I place the blame for the current "dead market" on all parties--and principally because it has become appropriate in the US to be greedy. Sellers are greedy--they have bloated ideas of their home's value. Unlike the stock market where ups and downs are reported daily, and the world has a handle on the value of a particular sector, they often just sit stupidly and hope a dope will come along and buy their home.

And usually regardless of what the Realtor says, the sellers control the price asked.  Realtors can advise sellers as to an acceptable price, but Realtors know which side of the bread has their butter, so they are often reluctantly willing to go along with the greedy sellers higher than realistic asking price.

Sellers who don't get their way in a discussion of the right asking price will find another Realtor or just go it alone as a FSBO.

NAR has been quick to point out that 80%+ of the homes sold are sold by Realtors.  But the more we deal with greedy sellers, the more likely they are to become a FSBO.

And the bottom line is the BUYER actually sets the price. In 2000-2006 we had greedy buyers, ones who were anxious to get the next good deal and who COULD AFFORD to drive up the price in a bidding war. Remember those? Five offers on one of my listings on the first day it was listed. Wow.

But what of the future?  I am hoping that somewhere near the middle of the 2nd quarter of 2009, say April/May, a well known economist will say that based on the restated data just released, the bottom of the current market appears to have been in November 2008, and that we have nearly six months of history of stability and slow growth.

That coupled with the availability of ready credit (maybe we can see if the VA program can be expanded to all Obama's subjects) will bring a rapid end to the debacle we are currently experiencing.

 

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