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It's not overly cautious buyers, its the chasm between buyers and sellers!

By Rebecca Makas

Real Estate Agent with William Raveis Real Estate

April 21, 2008 11:14 PM

I submitted an offer yesterday on a gorgeous home. It was originally priced at $969,000 and has been on and off the market for at least 9 months, closer to a year likely. The home is now priced at $899,000 in an area where there is plenty of inventory in that price range. My buyer really loves the home, but just isn't willing to pay the asking price. He has logically figured out what he is willing to pay for the house based on statistics.

Here's the rub. The sellers have turned down numerous low offers. Is it that buyers and sellers are far apart? Or is it that both sides lack urgency?

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Julie Chapman

Julie Chapman Broker - Ormond Beach, FL

Daytona Beach Shores, Florida

Rebecca,

I took an offer from another agent yesterday on a properly priced listing that was 57K off list price and his only comment was that his clients were "watching too much tv".

Apr 21, 2008 11:29 PM

Laura Karambelas

Baird & Warner Downers Grove - Downers Grove, IL

Realtor - Downers Grove

We've had the same problems here. Working with both buyers and sellers, here is what I think:

sellers feel beat-up in this market and buyers are looking for GREAT deals! We need to just give everyone the facts and let them know the market IS what IT IS!

Apr 21, 2008 11:33 PM

Peter Nikic

Broad & Bailey Realty LLC - Valhalla, NY

Rebecca - it sounds like Laura's got a good point. it's hard for sellers to go down too much and it's easy for buyers to think the sellers are desperate, they'll come down in price.

Apr 21, 2008 11:37 PM

Laura Giannotta

Keller Williams Realty - Atlantic Shore - Little Egg Harbor, NJ

Your Realtor Down the Shore!

If the home's been off the market for nearly a year, it doesn't seem like the sellers are anxious or ready. Just like there are buyers that are 'tire kickers', there are sellers that don't need a sale.

Apr 21, 2008 11:39 PM

Anonymous

My suggestion is to negotiate and see how close you can get the two together. In the up market we had over the past 4 or 5 years, we were order takers, this market requires negotiation skills (and a motivated seller) to get a transaction to cloase. Good luck!

Apr 22, 2008 12:16 AM

Sandra Cummings

William Raveis Real Estate - Guilford, CT

Real Estate Agent, Guilford Connecticut

Rebbecca - Was your offer based on recent closed comps in the area? Or was if just a "feeling"your buyers had? I have had buyers submit low offers where we could justify the low price base upon recent closed sales and the current condition of the listed property.

On the other hand, I have received low offers that were not based on anything. On a property that was price correctly and had 3 offers on it. Buyers throwing out numbers and seeing if they will stick. Then they can't understand why they don't even receive a counter.

Apr 22, 2008 12:28 AM

Don Rogers

Keller Williams Realty Chesterfield - O'Fallon, MO

Realtor, Broker, CDPE, GRI, OnullFallon MO & St Charles County MO homes

I think that Sandra has a thought. Pull the comps and accompany the offer with them. The facts are what they are. The other issue is could the seller be upside down in taking a low offer. If this is the case maybe they need to come off the market. The market is what the market is!

Don R.

Apr 22, 2008 12:53 AM

Michael Setunsky

Woodbridge, VA

Your Commercial Real Estate Link to Northern VA

It appears the Sellers are waiting to get their price. Eventually they will. It's just a matter of time. You didn't say if your Buyer's logic was based on comps. If yes, the Sellers are probably unrealistic. If no, the Buyer may be unrealistic.

Apr 22, 2008 12:54 AM

Michelle Gordon

JH Realty Partners - Ada, MI

Finding Your Place

I work with mostly buyers, and the mind set is of most, they do not want to pay "full" price even If I can prove the home is priced very aggresively. I think sellers just feel beaten down. I tell my buyers getting a good deal is wonderful for you now, and I am happy to do it...........however in the future your home sales price will be figured in to assesements of future purchases in the area. Your "good deal" is going to de-value the nieghborhood.

I also try to find out from the local tax site what the home owner paid for the home. Some just do not have much room to move in price or it is going into short sale.

Apr 22, 2008 01:07 AM

It's not overly cautious buyers, its the chasm between buyers and sellers!

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