Today, sellers want top dollar for their homes and often not all buyers want to pay their price. I can't say that I blame either one of them. But, you can bet there’s someone out there that is willing to pay more than you for a house.
The real estate market is cyclical, so it’s ever changing. We’re always adapting and changing with it. When the inventory is low, prices increase. And, we end up in multiple offer situations with several buyers going after the same house. I recently wrote an article about Brevard homebuyers not having much time to make a decision on a house. And, that’s true. The good houses go first… sometimes in days, sometimes even in hours of hitting the MLS.
Remember, it only takes one buyer to purchase one house. And, often there is a buyer out there that is willing to pay a price for a house, that you may think is too high.
Different buyers have a different perspective on the perceived value of a home, based on that buyers own experiences and their own reality. If a buyer comes down from the Cold Snowy North to buy in Brevard County here in Sunny Florida, he may perceive our prices to be very low. Whereas, a buyer that has lived here in Brevard for the past 25 years, has watched the market grow and may perceive the same house to be overpriced. That Northern buyer may be willing to pay more than that local buyer, especially to get away from his $12,000 a year property tax bill.
When the right house comes available, often, a buyer feels pressured to move forward on a purchase based on another person’s timeline. If they don't move quickly the house that’s for sale may be gone. Some may not have the time they want to think about a purchase. Another buyer may scoop it up. But, once they pull the trigger, make the offer, and come to a meeting of the minds with the seller, sometimes buyer’s remorse can set in and the buyer pulls back. It can be a rollercoaster of emotions for a buyer. They’ve fought to get the house and now they wonder if they made the right choice. After all, it is the largest purchase of their lifetime!
In this market a Realtor may find one, two, or maybe three houses to suit their buyer’s wants and needs (depending on their price point) over a period of time. A good buyer’s agent can help to educate their buyer to the market. Then, when the right, realistically priced house comes available, the buyer can move forward. Notice, I said, realistically priced. Often the buyer has one opportunity to make his highest and best offer.
A house is only worth what a ready, willing and able buyer will pay for it. But, as I say that, just because $250,000 is at the top of a buyer’s budget, that doesn’t mean that gorgeous $285,000 realistically priced house, that just came on the market today is only worth the $250K the buyer has in his pocket. Perhaps, the buyer should be looking at lower priced houses.
And, as always a house has to appraise.
In this market, so often there is someone else out there that is willing to pay more than you for a property, based on his perceptions. And in some cases, I say, for that price, let them have it. But, be sure to consider today's market value of a home when making an offer.