Market Analysis: Buyers & Sellers - Real Estate's Players

This week, let us take time to discuss the consumers in this crazy real estate market we’re in. As the economy collapses and the government works diligently on an economic bail out plan, let’s discuss the players in the real estate market.

Buyers: The market is riddled with opportunity. Are there some over-priced listings out there? Of course and in this market they are easy to identify. There are more properties priced to sell, however. Don’t let analysis paralysis stop you from moving forward on a property you like. This term describes buyers who are paralyzed in moving forward by using price per square foot, comparable sales and waiting for the next statistic to be added. These tools are ideal and should be used to make an educated offer on your dream Cape Cod property, not to remain on the sidelines and lose out. The media also adds to this phenomenon. A buyer may be ready to make a well thought offer and then the media reports that prices are falling even more. Thus, the buyer suspends the process. This is common place these days. If you find a property you like, have your realtor provide the statistical data for you to make an effective offer. If the seller does not respond in kind, then move on. There are plenty of properties out there.

Sellers: Every offer in this market is a good offer and should be treated as such. If a buyer presents an offer and is pre-qualified, work the transaction until it is abundantly clear, there is no hope. You have nothing to lose by countering to a low offer, not in this market. Buyers today are looking at comparable sales, percentage of list to sell price and price per square foot. This is real data they are using to make their offers. Seller responses of “try again” or “a smaller unit may be better for you” or “I’m not bidding against myself” should be left for the scrapbooks of 2004 when another buyer was waiting in line to make an offer. Keep this in mind: buyers in this market are looking for opportunity. If they are taking the time, are pre-approved by a bank, which is no small feat these days, do you really want to send them to another seller to see if he/she will engage in negotiations? If so, you may want to remove your unit from the market and lessen the amount of inventory. Tossing an active buyer aside in this market, before negotiating to see where they will go, is most likely not in your best interest.