Sep/Oct newsletter article..
Unrealistic Expectations Hanging on
Several times last year I wrote about the unrealistic real estate market that we were experiencing. The “dot-com” mentality that a home “should” appreciate by $10-20k per month was mind boggling. As a listing agent, it was kind of fun to help people sift through ridiculous offers and advise them how to maximize their situation. Many buyers who were not paying cash or waiving contingencies were left on the sidelines watching the market pass them by. Well, it has been about a year since the crazed bidding wars have disappeared and we are now in a much more normal market.
Yes, I know, the newspapers are saying that it is doomsday, but that is because they like to sell stories. Remember, in most situations, home ownership is a great idea. In years past, people would be happy with 5 or 6% appreciation in a year. The whole 10% a month thing isn’t gonna happen again any time soon.
Many “sellers” are kicking themselves for not selling last year and trying to price homes at those crazy prices. It is funny to see how many homes are on the market that people bought 3 years ago and list today at $300k higher. Many of these people feel insulted when an offer comes in $50 below their asking price. Let’s face it, the run up did some good things for many people and it helped create jobs, sales tax revenue, and a large surplus in revenues for our state. But, homes normally take more than an hour to sell and that is ok, too. The market always dictates the price of a home – good, “bad”, or otherwise. The good news is that with the easing market, buyers have a chance to get back into the “game.”