Why do Buyers offer less?
Last week I showed a condo that was priced at $110,000 and it was actually in very good shape with newer items. The complex was built in the late 80's but the association has done a fine job of maintaining it and even recently replaced the roofs, siding and gutters. The fee's are still low and the unit was in a great part of the complex.
Get this the buyer wants to offer $90,000 - $95,000 because it is a buyers market. I wanted to scream "You can't discount a discount". Here's the best part - in 1995 these units were selling around $110,000 and at the peak 2004 they were getting around $155,000. So at $110,000 I would say this is already a discount.
So why is it that buyers today want to Discount an already discounted price?
It seems like they find something they like then go for the throat and offer 15%, 20% and some even 50% less. I wonder sometimes if they really want to buy. Where does this stuff come from? The news? The web? Their family & friends? Please someone tell me who is teaching buyers this stuff????
If you really want to buy a home you need to listen to the professionals!
As REALTORS we have access to the comps, so we know not only what homes and condos in the area are selling for but we can show you how much less the offers have been. In today's Macomb County market we are having to go back over 10 years in some areas. But we do have the data. Buyers need to quit listening to late night TV, their aunt Millie, their good friend Johnny and the media.
There is a pinnacle point at which every home sells, when the scale tips in favor of the seller and that is when offers are made. If you play the "it's a buyers market game" and try to "discount a discount" by making an offer below that point, you will lose the home and be out bid by another buyer.
Believe it or not Macomb County homes are selling and sometimes with multiple offers
Regardless of what you hear it is a great time to buy a home or condo. Prices are low, rates are low and Uncle Sam is giving an $8000 tax credit. Currently 17% of the market is bank owned homes and condos however 70% of what's selling is bank owned. That means the discounts are moving off the shelves and fast.
So if you find a home you like move fast but please do not Discount a Discount!
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