Who's In Control?

In our current "Buyer's Market" - does one party have more power, the buyer or the seller?

There are many more sellers than buyers at this moment, so you might expect that the buyers have all the control.

To a certain extent that may be true. Sellers need to price their home very competitively and have their house in top showing condition. The homes with the best price and the best condition usually sell first.

But because of the competitiveness in this "Buyer's Market", some sellers are pricing their homes at their bottom line price. These sellers may move off their price by $500, but that's it. The reasoning behind this is to bring in more buyers, thus increasing the chance for an offer.

When a home for sale is priced so close to it's bottom selling price, it can be a little disappointing for a buyer. Buyers are hearing that it's a "Buyer's Market" and they can get a great deal. Many times these homes are a great deal, they are priced to sell.

Here's an easy example: A house has been on the market for several months. The original asking price was $275,000. Each month the seller has lowered the price. Now the seller is at a "break even" point if they can sell for $250,000. So the list price is changed again to $250,000. This new list price opens up a new category of buyers, there are more showings and an offer is made. The buyers are surprised to find out that the seller will not sell for less than $249,500. The buyers think that this is not much of a "deal". But would the buyers feel better if they got the house for $249,500 when the list price was at $275,000? Most likely, the buyers would not have even looked at the house, thinking that it was out of their price range.

As a real estate agent, I work with both buyers and sellers. Some of my homes for sale are priced at their "rock bottom" price. I counsel the seller and we discuss that the most important thing is to open up the house to as many buyers as possible. My marketing plays a large part in that, but price is also a key factor.

When I am working with a buyer and we run into this same situation, I explain the logic behind the pricing. We review the area's sales again and determine if the house truly is a good value at the current asking price. Many times the house is a great deal at the list price.

You ultimately control which home you will buy. My job as your agent, is to point out recent pricing trends in our local real estate market.

Jim Starwalt

Thinking of making a move? Log onto my website at www.StarHomeFinders.com and search the Multiple Listing Service from over 150,000 homes for sale. Registering is quick and easy!

Jim Starwalt, Broker Associate RE/MAX Center, Phone: 847-548-2625 Jim@StarHomeFinders.com