There has been a dramatic shift in the market the last few months.
The astronomical prices, the tens of thousands of dollars over asking, and the off market or one day on the market sales are gone.
Prices have stabilized, no huge price drops, but a modest adjustment in pricing to reflect the lower demand and easing appreciation. There is a slower pace to sales with a shift in power to buyers. Homes priced to reflect this slowing trend and not the red-hot surge of past years do in fact sell in time.
That doesn’t mean that homes are necessarily affordable. The prices are still very high compared to the rest of the country, but they are more affordable than they were.
So, what’s the best way to take advantage of this shift in the market?
Homes are still selling and people are still buying. This is still an amazing housing market, but things have slowed down.
Aggressive buyers are trying to take advantage of sellers’ impatience by coming to the table with VERY low offers. We had an offer on a recent listing that was $100,000 UNDER asking and below comps!! That was unheard of 6 months ago! Luckily our seller was not impatient, or that situation could have turned out very differently.
We are also seeing aggressive sellers putting their homes on the market for over comps in the area because the sale prices were higher just 6 months ago. That doesn’t mean that the offers won’t eventually reach the asking price, but it will take time. If a seller is impatient, this will cause extreme frustration.
Know What You Are Getting Into
The best way to strategize is to understand what you are dealing with, as a buyer or a seller.
As a buyer, there are more homes going on the market for slightly less than they were a few months ago. That does not mean you can come in way below asking and expect a victory, but it is reasonable to come in right at asking or just below to start the negotiating process.
As a seller, you need to understand that there is most likely more competition than you would have seen 6 months ago. It is extremely important to pay attention to the comps in the area and work with your agent to pick a strategic price. It is a hard sell if you are asking over comps.
Be patient. Stay persistent. And good luck!
“Patience is bitter, but it’s fruit is sweet” – Aristotle
Don Sabatini & Barbara Sauer
Realty World Castlerock – Willow Glen