We’ve all had the pleasant experience of walking into a business and spot a rack of clothes being discounted 25% off. What happens if that discount is not enough to inspire a customer to buy the product. Then another mark down is in store. This blog is not comparing the purchase of a suit to the acquisition of a home, but the emotional concept is similar. A Flea Market would probably be a more accurate analogy for today’s home buyer, every item is always negotiated, same goes for home prices. Home buyers have been waiting on the sidelines for the housing market to show some signs of life. This delay has given those buyers valuable knowledge and understanding of the market conditions.
Sellers and buyers have contrasting points of view. Homeowners set a price and are reluctant to barter much from that point. Buyers on the other hand want to haggle, regardless of most circumstances. The large majority of buyers are not in a rush and truly live by the old Proverb quote “All good things come to he who waits”. Each consumer has differing levels of motivation when buying a home, depending on their personal situation. A buyer that can be patient has more leverage than a family that has a time of the essence position and needs a property immediately.
The adjusted house values plus the all-time low-interest rates have brought buyers out of hibernation, but not back to the same magnitude as during the housing boom. Sellers that start marketing their property today and receive three offers the same week are working from a degree of predominance and can demand higher value and offer fewer concessions. The more common scenario would be, seller starts to actively market their home and months into the process are still waiting for that first offer. This second example puts the buyer in a level of strength and more inclined to make a substantially lower offer than in the first example.
There are no clear-cut, one size fits all strategy for home buyers when it comes to purchasing a home. The length of time on the market is an important indicator that will determine the deduction on price that most sellers will receive from prospective buyers. An offer in hand is better than no offer at all and sellers are encouraged to respond to all proposals. The variable that ultimately determines which home sells and which home lingers on the market will be the initial starting price. Please visit my website www.JohnnyBrooksHomes.com for helpful tips on buying or selling a home, scan my informative blogs and easy access to view local area homes for sale in Davis, California and the surrounding communities.