People who don't really need to sell their home should not put them on the market at ridiculously high prices.
Prices don't go up 20% just because Sellers LIST their homes at 120% or more of market value. In order for prices to stabilize and/or improve, inventory levels need to shrink or the number of Buyers needs to increase significantly, and quickly.
It doesn't help anyone if more than 63% of the inventory on the market is significantly overpriced.
I work with Buyers Only. We see LOTS of homes. Many of my clients write offers on multiple homes before we get a contract. After lots of negotiations, many Sellers are still 10% above market value and will not budge. My Buyers move on. These Sellers aren't serious. They don't need to sell and won't sell unless they can find a Buyer who is dumb enough to overpay for their home. That's just not likely to happen in today's market.
Because of the amount of inventory, Buyers have the luxury of continuing to make reasonable offers to unreasonable sellers until they find one who is willing to be reasonable and willing to sell their home at (or below!) market value.
Fortunately, there are some Sellers who are listing their homes at or near market value. (Note: THESE are the homes that actually SELL.) Even then, many are still negotiable because of all the competition. (Never mind that most of this "competition" isn't really competition at all.)
My clients aren't the only Buyers who have seen a lot of overpriced inventory and aren't willing to overpay for a home in today's market. Buyers are out there and they will jump on well-priced listings. Multiple offer situations are still common in this economy for well-priced homes. It almost seems that they are more common for a well-priced home... It seems most homes that are priced well are Sellers who are "motivated" to sell.
Bottom line for owners: Do everyone a favor and don't list your home just to see if you can get some uninformed buyer to pay you 20% more than it's worth. Buyers aren't falling for it. Those days are gone. The "boom" is over. Everybody will be better off with less overpriced inventory on the market.
If you have excellent credit and will be buying a $300,000-$800,000 home within 90 days and would like an agent who will work exclusively for you, make sure you get an Agent on YOUR side of the transaction! Make sure you hire an E B A! Call us at (801) 969-8989 or contact us via the link on this page.
Exclusive Buyers Agents do not list homes and never represent Sellers. They represent Buyers ONLY on the Buyer's side of the transaction. They work to get BUYERS the Best Price and Terms when they Buy...
©2009 Homebuyer Representation, Inc. - "The Real Estate Agents on the Buyer's Side" TM - Salt Lake City, UT
Exclusive Buyers Agents (EBA) - All Rights Reserved