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The market is made by the buyers and sellers not the listed and lookers. For almost 2 years my area had an extremely dysfunctional market. The only thing I was able to do was to advise sellers to accept the reality of the time and price aggressively and sell now or follow the market down.
I told the folks looking at property to ignore the asking price and to offer inline with recent sales. I always provide my comps with an offer. I see part of my job as guiding people to create a market.
So no I don't think I was or am compelled to preserve the pricing in my marketplace. If anything I want what we have now, a balance where list prices are reflecting what buyers are willing to pay. A healthy marketplace.
Depends on the market. In my market many homes do sit on the market for a long time BECAUSE the sellers are unwilling to bend much. They are willing to wait for their price.
But the funny thing is people don't believe me when I tell them that. I guess it is natural, but it's annoying just the same. I know my market and I know that there aren't as many "distressed" and "anxious" sellers as some may think. I also know of certain homes that the seller IS anxious and ready to make a deal - but they want to keep their high listing price for "negotiation wiggle room." If I happen to KNOW a particular seller is anxious and willing to be ultra flexible, then I will most certainly try to show it.
Not all markets are alike. Not all sellers are desperate. I love how it's always, somehow, the agent's "fault" for trying to do the best job possible....
Keep in mind that this is based on final list price at time of purchase. The price may have been adjusted downward between first listing and the sale. Also, a majority of our sales are distressed properties (bank owned/short sale) where prices are very competitive, with multiple bids over list.
World of difference between original and final list price. I too see properties close for 1-3% of final list price.....even though it's more than 30% off the original asking price and 2 years later.
In my market many homes do sit on the market for a long time BECAUSE the sellers are unwilling to bend much. They are willing to wait for their price.
This is, for the most part, old market think....left over from strongly appreciating markets, when time on the market often meant more money in the pocket.
In this market,it tells me that the sellers are not motivated to move. Many eventually withdraw from the market. Price is more important to them than getting sold.
Any agent that tried to "preserve prices" of their market would soon starve to death. Real estate agents get paid when deals closes.
The odds of deal closing for some outlandish price are just about nil -- buyers just do not walk up to the table with a wheel barrow of money and appraisal have to come back that support the selling price or the lender will not finance the deal.
The psychological and statistical likelihood of a grossly mispriced house finding an uninformed buyer with unlimited funds are infinitesimally small.
Agents can't control the market. RE is supply and demand. I feel no need to try and influence the market. If a buyer hires me my job is to get the biggest discount I can for them and if the seller hires me my job is to try and maximize their profit. Plain and simple. My job is to work for the client not try and influence the market.
Is is true for people with mortages too? If I owned my house, I would wait for as long as needed to get my price as well..
Not everyone has that option though. Job transfers, divorce, death, children...there all sorts of things that make it so people don't have the option to wait.
Is is true for people with mortages too? If I owned my house, I would wait for as long as needed to get my price as well..
Quote:
Originally Posted by Brandon Hoffman
Not everyone has that option though. Job transfers, divorce, death, children...there all sorts of things that make it so people don't have the option to wait.
Right.
And to actually sell and close, a seller has to at least nod to current conditions.
For me, I'm not determined to get a "deal", or a certain percentage off asking price, I just know what amount I'm able to spend and in some cases, a home that has been sitting for 6-12 months (or THREE YEARS, as was the case with one house I looked at ) or for whatever reason might be willing to accept 20% less than asking, so what's the harm in looking and maybe making an offer. I think selling for less than asking is better than a house going to short sale or foreclosure, but maybe the latter two are better alternatives for the seller in some cases.
20% where? It depends on what the price is as well. What price range? For example, a home priced at 500k less 20% is a whopping 100k right off the top. Not likely, since that home priced at 500k is alreay way below what it was 2-3 years ago(say 600k). However, when you're talking about a home that is priced at 200k, getting for 160k doesn't seem so dramatic. See my point here? So shopping in a price range 20% above what you can afford, hoping to bring it down 20% or what you can afford, is definately someone trying to "get a deal".
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) or for whatever reason might be willing to accept 20% less than asking, so what's the harm in looking and maybe making an offer. I think selling for less than asking is better than a house going to short sale or foreclosure, but maybe the latter two are better alternatives for the seller in some cases.
