Buyers Market Doesn't Mean "Name Your Price"
Posted Dec 10, 2007 @ 8:12 pm, Viewed by 504 Visitors, Read 507 Times.I've had some interesting interactions with buyers over the past couple of months, it seems that the media has some people believing that because it's a so-called "buyers market' , they can basically ask for anything they want. Of course this is far from the truth, and buyers who are unrealistic about how much negotiating power they have can end up dissapointed.
If a property has been on the marke for over two months, then many feel that the seller will automatically be willing to take 30-50k under asking price. What many buyers don't realize is that every seller has different motivations, and not everyone is "desperate" to sell. There are people who can hold off on selling if they don't get what they wan't, although they are the minority.
Another aspect is the fact that many sellers don't have much if any equity, so their asking price may only allow them to break even after paying real estate commission and other fees.
So it's important to educate buyers about the realities of the market: sure there are some great deals to be had and less competition among buyers, but that doesn't mean you can walk in and name your price either.
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Absolutely! This way there is an understanding from the outset.
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Hamid Grinage is a Realtor with the Grand Lake office of Prudential California Realty in Oakland. He is E-Certified, a graduate of Sonoma State University, and a member of the National, California and Oakland Association of Realtors.
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One thing to add, sellers that are truly motivated have already discounted their homes drastically so to add another $30-50k reduction on an offer is just insulting. While real estate is a local business I am hearing this same story playing out all across the country. You are correct that agents need to educate their clients, and it needs to be done before they take them into the first house.