While it is a Buyer's Market in virtually all parts of the country, it doesn't feel like it in San Francisco, at least not in the halfway decent neighborhoods. Only, my clients don't seem to believe it.
A couple who is unfortunately completely unrealistic about what they can afford, and what they think they can buy a particular property for just won't listen to me. They watch TV and hear report after report about the housing crisis and that you can buy a home for way below the asking price and get a real bargain. I show them the comps in the San Francisco neighborhoods they are interested in and the comps don't support those reports. On the contrary, the good properties in the good neighborhoods still get multiple offers at or above asking price. Yet, they want me to put in offers at way below asking price, and even then they can barely afford what they are bidding on the adjustable rate mortgage they qualified for.
What should I do with them? How can I talk sense into them? I've done calculations for them showing them exactly how little money after tax they'd have to live on if buying the home of their dreams, but they don't seem to understand that they are exactly doing what so many others did before them: get into a house they can't afford. Do the examples of other poeple not teach them anything?
What would you do in my situation?