We've been on a rising trend with home prices for quite some time now. I remember in January of 2012 I wrote an offer for a home that was just over $2 million. My buyers had all cash and they offered over asking price for the home. There were several offers on that home and our offer was not the highest. In fact, the other offer that was higher than ours was also all cash. That was my first sense that the market was making a turn. From then on, it's pretty much been on the rise and we've been in a seller's market. I'm now starting to see another change. Sure, the season is slowing down as it naturally does around labor day and after the kids get back in school but I've seen this new wave in the market for a couple months now. And here is what I'm seeing: Homes that are priced right at the price they will most likely sell for may get an offer or two or may sit for a few weeks. Homes that are priced barely over where they would most likely sell are getting offers but the offers are lower than the asking price or the home sits for quite some time and either lowers the price eventually or the owners take it off the market. This is a big change in where we've been for the past 4 years in real estate. Up until now, most buyers knew that making an offer under the asking price would just leave them out on the curb, so-to-speak. And sellers had a big upper hand for so long, that they could sell their homes and get the buyers to agree to many interesting terms that otherwise would seem over-the-top. But there is a good chance that we may be getting into a market where buyers and sellers are on a more level playing field. What does this mean for you?
First, if you are buying a home, you still need to come in with a strong offer. That doesn't mean offering up your first born either. It just means that your offer needs to be attractive and fair. You're most likely not going to be met with crazy expectations from the sellers either because sellers are learning that buyers are getting picky and walking away when sellers behave boastfully.
Sellers...you need some great guidance as to what to do to make your home look appealing to buyers. Before now, sellers would look past a messy kitchen or shotty gardening job. That isn't the case right now. They expect to see a clean home unless you are selling your home as a fixer. You will also need to price it very well. For the past couple of years, I've advised sellers to price the home just under where it should sell for. I still say the same today. If you price and advertise your home well, then you should hopefully get a few offers. This will still give you the chance to pick from the most qualified buyer. But if you are pricing your home too high, then you may see it sitting around for a while and possibly still get negotiated down quite a bit after it sits.
But both buyers and sellers should really be working with an agent that is in tune with where the market is today so they know how to give the best advice possible. And the market is different in the Westside than it is in the Valley so keep that in mind as well. And if you need help finding or selling your home, call me. I'm always happy to help.
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