Buying In A Seller's Market
Most people approach buying a house the way they approach buying a car. They assume there is some padding in a price, and often make an offer far below asking as a way to test just how much padding there is.
It’s not about that offer, it’s about what the sellers respond.
2020 is a very strong seller’s market in the Catskills. Let me explain how that looks.
A very nice house is for sale for a reasonable price. Offers come in 10% below asking or less.
These sellers are having none of it. They priced it based on the sale prices of houses around them. They priced it where it needs to be for them to move. They’re not budging.
They’re not responding to these offers, except to thank the buyers for their interest. Someone will give them what they are asking, and that person is going to get a great home.
Other sellers I’m working with have priced their home aggressively, looking to sell quickly. It’s a gorgeous place, but they need to move.
We expect some fishing expeditions, but we’ve made it plain to everyone that there’s no room for negotiations and they’ll stick to their guns.
I was approached by sellers who wanted to list their home, but they wanted to “start high” and then come down if needed. That’s a bad strategy unless your home is flawless. This one is a a great place, but it’s also got some challenges. Overpricing is unrealistic, particularly with a short timeline, which they also have. They’ll find another agent.
The market always dictates the price, and this is a seller’s market, no doubt about it. But inflated prices are still recognized for what they are, and it’s a waste of everyone’s time. Eventually, the price will be where it should have been to start. And then the property will sell.
I love how they price real estate in Scotland. The Scots are a no nonsense people. They take offers *over* the asking price. The asking price is the lowest they might possibly consider. But if you want to win there, you bid over asking. Sometimes, well over asking.
In a sellers’ market, US homebuyers would be wise to keep that in mind.