Sunday, January 01, 2012
I hope 2012 is a great new year for us all! To start the new year off right, here's an article about a study of the divide in expectations between home buyers and sellers. It appeared in today's L.A. Times; the title should link but if not click here. The article starts out this way:
"Where do you side in the great real estate buy-sell divide of 2012? If you're a homeowner considering selling sometime in the new year, are you apprehensive that you won't get the price you need or want, and therefore it's possible you won't even try to sell? If you're a buyer, do you agree that with 30-year fixed mortgage rates now below 4% and home prices near cyclical bottom in many areas, 2012 offers extraordinary opportunities, even if listings are fewer than you might prefer?" Boy, that certainly hits the nail on the head. In my experience, the sellers' sentiment is extremely common.
The article also states, "Many owners "have not adjusted their price expectations downward" to keep pace with local declines in property values after the mortgage bust." I'll say. But in fairness, many owners can't go down much on price without being upside-down, either.
And here's a final take that I'm seeing more and more of: "...agents sometimes walk away from unreasonable listing price demands, but they also use a technique that seeks to bridge the seller-buyer divide: pre-authorized price reduction clauses in the listing contract that ratchet down the asking number."