Greedy Home Sellers + Cautious Home Buyers = Flat Market

 

More & more indicating factors are leading us to a cooling off of the crazy hot market we experienced in Southern Cal for all of 2013. Recent surveys show that over 40% of Home Sellers this spring are planning to price their homes ABOVE market value! This strategy is not wise folks! Buyers in today's market have very little tolerance for over-priced homes this year and will likely pass them up letting listing after listing sit on the market stagnant until the Seller is forced to take action by lowering the price, or removing it from the market all together. Several Sellers are deciding to lease their unsold homes for the time being as well. 

 

Greedy Home Sellers + Cautious Home Buyers = Flat Market

 

If Sellers do choose to opt for price reductions on their over priced listings, they are not guaranteed a favorable market response even then! Many home Buyers see price reductions as something "wrong" with the house or they have simply lost interest in it all together or bought a more reasonably priced home by the time the reduction occurs. The truth is, and I tell ALL of my Sellers this, its only an exciting "New Listing" once. The amount of traffic a new listings gets....like showings, visits to websites, inquiries, and open house visitors is the greatest in the first 2 weeks on the market! You will never get that kind of exposure and excitement with a price reduction unless you're GIVING the property away! 

 

Greedy Home Sellers + Cautious Home Buyers = Flat Market

 

The moral of my story here is....Sellers, please don't take the 20+% your property has increased in value over the last year and try to squeeze more out of it! Take it at fair market value or lightly above if you're lucky, and run! Otherwise, you will wind up chasing the market and settling for less or just being stuck with the property for now until prices slowly get to where you'd like them to be.

 

It's a great market out there for a Savvy Buyer or Seller! Happy Monday!