Most sellers say they want to hear the truth, but are offended by the reality of today’s market. I know you must have heard about the challenges of the current Real Estate market, but are you realistic when you talk to your Realtor about pricing?
It seems like sellers in this market want to pretend that the market conditions don’t apply to their home. They tell me that they want the truth, then they list their home with the agent that gives them the highest bid. They say they don’t really need to sell. They say they can wait until the market recovers, but then they list high and chase the market down.
If your home is on the market for more than 60 days and you don’t have any offers, you are overpriced. There is no shortage of buyers for great deals. Properties that are priced correctly are seeing multiple offers. Buyers that see a great deal need to act quickly and sometimes need to offer at or above the list price.
The current market and appraisal environment won’t allow most buyers to purchase an overpriced home. Appraisals are being affected by bank owned and short sale comparable sales. The appraisers are looking at the most recent sales and determining the value and prices in most categories are still moving in the wrong direction for sellers.
I like to use the analogy of floors and ceilings to explain our current market to sellers. I remember when the most recent sale created a new floor, and the next sale would be a little higher than the last comparable sale. These days we are looking at a new ceiling with each comparable sale, and the appraiser finds it difficult to justify an appraisal any higher than the last closed sale.
Over 67% of the homes sold this year in Big Bear have reduced their price. Homes that are initially priced correctly still sell quickly and actually bring the highest profit for the sellers. Chances are your home will be worth less in 6 months than it is now.
The Big Bear Real Estate Market hasn’t hit the very bottom. It is still coming down. Be sure to figure the cost of keeping your home and any further possible decline in the market into the equation if you are going to wait for the market to improve.
This is a great market for buyers. Most sellers are going to buy another home, and this is an opportunity to purchase the next home at a great deal.
I work with buyers and sellers in the Big Bear area. Please let me know if I can help you with your Real Estate needs.
Steve Hirschler / Big Bear Real Estate Agent
Coldwell Banker / The Tim Wood Group