Grand Rapids Michigan Real Estate Blog

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Is Pricing Stalling Home Sales?

Is Pricing Stalling Home Sales?

Recent Survey Results:

87% of buyers by survey want a “no fixes” home

67% of buyers think homes are overpriced

77% of sellers have their home overpriced

 

No one thinks our Grand Rapids housing market is as normal

as it used to be.  But many disagree on why.  Most Sellers think

their home is worth more than it really is.  And most Buyers

think the home of their dreams will be available at fire sale prices. 

How do the two sides ever come together to engage in a home sale?

 

P1010105 thumb Picky Buyers Stall Home Sales –   Or Is It Pricing?

 

Each of these positions has a grain of truth.  The seller’s home

may well have been worth 25-40% more just a few short years

ago.  In fact, if they bought at the height of the market, they

will most likely not be able to sell their home for what they paid.

This can be painful and lots of potential sellers are stalled from

selling because they cannot make up the difference between

their mortgage and the home’s probable selling price.

 

Today’s Buyers are savvy and know what homes are going for

 in the neighborhoods they want to live in.  Most buyers do research

for 4-12 months before purchasing.  But they shouldn’t take an overall

estimate of home sales, like Zillow’s Zestimate to really nail down the

purchase price of their dream home.  If there are any Short Sale or

Foreclosed Homes included in the mix, they will usually sell for much

less  than a traditional home in good condition, and for good reason. 

 

Not many neighborhoods today have homes that have not been

in either a short sale or a bank foreclosure.  Major repairs on these homes

are usually required and may need to be completed before occupancy.

Since most Buyers want a NO FIXES home, this means they will likely

have to pay the market price for the home of their dreams, and the

Seller will have to sell at market pricing.

 

This is where the art of negotiation by your REALTOR comes in. 

Negotiating a 10% difference in price can take some time for both parties

to come to an agreement.  Don’t be mistaken, expert negotiating skills

are paramount to getting a home sale closed.

 

Syndicated from Grand Rapids Real Estate Blog

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The authors of the this blog write about Grand Rapids Real Estate,

the Greater Grand Rapids MI area, and what it is like to live in

West Michigan.  We believe: Grand Rapids is a Great Place to Live!

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Westbrook Realty Grand Rapids MI Real Estate

                          Contact Terry   616-292-7263

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Comment balloon 3 commentsTerry & Bonnie Westbrook • November 14 2011 09:32AM

Comments

Great article

 

Posted by Kathy Scipione, Kathy Scipione, CRS, GRI, AHLS, ABR, (Long and Foster Re Inc) about 8 years ago

Bonnie & Terry--Your market is so similar to many across the country. I guess people are the same no matter where they live. The hardest to understand is the paradox of the seller who wants the price of their home at the value from 3-5 years ago but when they put on their buyer's hat and go to buy, want a home at a rock bottom price. Working with a REALTOR that you can trust to give you good advice whether buying, selling or both is imperative in this changed market.

Posted by Teri Eckholm, REALTOR Serving Mpls/St Paul North & East Metro (Boardman Realty) about 8 years ago

Teri:  We all have a front seat to human nature in action.  

Posted by Terry & Bonnie Westbrook, Westbrook Realty - Grand Rapids Forest Hills MI Re (Westbrook Realty Broker-Owner) about 8 years ago

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