Is Pricing Stalling Home Sales?
Recent Survey Results:
87% of buyers by survey want a “no fixes” home
67% of buyers think homes are overpriced
77% of sellers have their home overpriced
No one thinks our Grand Rapids housing market is as normal
as it used to be. But many disagree on why. Most Sellers think
their home is worth more than it really is. And most Buyers
think the home of their dreams will be available at fire sale prices.
How do the two sides ever come together to engage in a home sale?
Each of these positions has a grain of truth. The seller’s home
may well have been worth 25-40% more just a few short years
ago. In fact, if they bought at the height of the market, they
will most likely not be able to sell their home for what they paid.
This can be painful and lots of potential sellers are stalled from
selling because they cannot make up the difference between
their mortgage and the home’s probable selling price.
Today’s Buyers are savvy and know what homes are going for
in the neighborhoods they want to live in. Most buyers do research
for 4-12 months before purchasing. But they shouldn’t take an overall
estimate of home sales, like Zillow’s Zestimate to really nail down the
purchase price of their dream home. If there are any Short Sale or
Foreclosed Homes included in the mix, they will usually sell for much
less than a traditional home in good condition, and for good reason.
Not many neighborhoods today have homes that have not been
in either a short sale or a bank foreclosure. Major repairs on these homes
are usually required and may need to be completed before occupancy.
Since most Buyers want a NO FIXES home, this means they will likely
have to pay the market price for the home of their dreams, and the
Seller will have to sell at market pricing.
This is where the art of negotiation by your REALTOR comes in.
Negotiating a 10% difference in price can take some time for both parties
to come to an agreement. Don’t be mistaken, expert negotiating skills
are paramount to getting a home sale closed.