The Real Difference Between Buyers and Sellers

Nice post.  I am seeing a lot of buyers waiting for something.  I get my sellers to reduce the price and the buyers come in with a super lowball  offer.  It has been a sellers market for so long that I think sellers are being punished for the past.

For nearly three decades an acceptable rate of appreciation on a home was 6.5%.  Then the "boom" of 2005 hit, multiple offers low inventory (here in Florida) and home prices went "nuts" .

For investors getting a 20% return before the boom as great now they are looking for 200-300% return on their investments. The problem is with so many homeowners arriving to the party late, the buyers have moved on. We went from ahving 1200 homes available for sale at the start of the housing market Rush that would be sellers who arrived late found themselves in a market of 7000 homes for sale compared to this time last year. Closings conversely have shrunken to minisule percentages with news that foreclosures are on the rise.

Buyers now are making lower offers and some foolish ones think the market will continue to sag- the bargain shoppers. But, it fairly safe to say the market has corrected, and is correcting, and home values are equalizing. The longer they shop the sooner they will realize what fair market value is.  I hope!

Nice post, thanks for sharing your thoughts! I believe that the market will balance out in 2007 with buyers and seller having a more realistic view and expectations.

i like a balanced market, myself.  what's interesting to me is that the folks who are lucky enough to sell out of the quiet markets are coming here to Charlotte NC with the hope of making those 200% returns of the 'bubble' in other areas...and we're projecting 9% for 2007...but it's hard to adjust expectations.

In many cases, the buyer and the seller are the same person.  The home that they want sooo bad is clearly overpriced.  The one they want to sell is undervalued!

In many cases, the buyer and the seller are the same person.  The home that they want sooo bad is clearly overpriced.  The one they want to sell is undervalued!

Good post Kaye. I have been on both sides of the table Hopefully in 2007 things will be a bit better :)

Kaye.... I agree with Leigh... I love a balanced market... overall,for me... it doesn't matter where rates are..... who's buying... more sellers than buyers or vise versa...reason being.  I just network and my referrals keep me busy.

Overall....these clients as you mentioned.... sellers trying to get the price pushed upward or wait it out...  buyers, trying to get a better price... sometimes comparing a price of a great house to that house that is no so great....but think the sellers should come down.

Looking forward to 2007 also... 

Compare it the stock market.  If I own a certain stock, I'm likely to be bullish on it.  But if I don't, maybe I'm waiting for the stock to drop some more before I buy!

Like a couple of other posts have said, why oh why can't we just have a perma-balanced market??? :)

Aa ah . . . this is so true. Now that the cards are in the buyers hands, they tend to play a little harder. This is causing lots of sellers to feel the brunt of these buyers decision. Unlike earlier markets, it is worst for the sellers now who might seriously need to sell. Next year might be too late for some of them.

Great post. It is always interesting to note the changes that ocur in buyer and seller perceptions as the market shifts. I think we are finally starting to see buyers becoming more comfortable with the idea of buying, since the prices here are now shoing much of a changea dn the hoped-for bublle burst has not occurred. Many sellers seem to be getting the idea that they must be more realistic about their pricing, although some are still out in the stratosphere. It will be interesting to see what happens after we get through the holiday slow down and into the spring market.

It's difficult to determine why buyers are having trouble pulling the trigger but more and more I find people waiting and waiting.  So far only a few have lost out on a good deal but for the most part their waiting doesn't seem to have hurt them.  

The Power of NOW

Waiting for the right time often results in 20/20 vision - looking back and seeing many right times and good opportunities missed because one was hoping for something perfect instead of... 

Kaye - Great topic of conversation.  Buyers and sellers do have one thing in common.  They both want the home to sell.  We get the big bucks to bring them together.

Kaye, Thanks for the post. Buyers are more savvy today and I agree, it is not just about a roof over their heads. It is also about building wealth for themselves and their families. The paradigm you laid out with regard to this market is nothing new and as is the natural order of things, it will correct itself. As Kristal Kraft has pointed out in REALTOR...It's NOT about you!, stay focused on the Consumer Centric Model and you will ride the curve.

Greta post! If buyers and sellers had crystal balls, would the seller's make the same predictions as the buyer's? Kaushik's comment sums it up nicely.