Happy September!
I frequently review sales data and since the market has started to shift, I have noticed a few properties that have sold for less than they would have in the spring, and for prices that many would call "a good deal." I am cautious about using the phrase "a good deal" as that is subjective - there are so many factors that come into play when analyzing a home's value and, always, the true value comes from the purchaser. What I have witnessed over the past 18 years I've been in business is that opportunities are almost always a timing issue, and often presented when the following happens:
A buyer is prepared financially: has the cash ready to go, or is fully pre-approved
A buyer understands the market and also understands that we never know where the bottom of the market is, until the market starts to rebound. So they are less concerned with timing the market and more concerned with investing where they want to be.
A buyer understands that unless one has an unlimited budget, perfection does not exist. Buyers rarely find a 10 out of 10, but if they get 7 out of 10, they are living in a dreamy place.
A buyer understands that most deals are a compromise between a seller and buyer. An example:
Originally when a seller retained an agent to sell their home, based upon sold data from the last 6 months they anticipated a $2.8M sale price on their house. A few months pass as they prepare their home and their agent has updated them on the market shift, so they now have adjusted their expectations to a lower sale price of $2.6M. They list their property at $2.195M to get more attention on the market but are still hoping for top dollar.
Then comes along a distraction in the market: a volatile few weeks in the stock market and consumer confidence is down, and you are the only buyer writing an offer. As a buyer you may have doubts, perhaps you start to think something is wrong with the house, instead of the reality that many buyers are nervous and waiting on the sidelines. Perhaps you want to write a lowball offer - I have seen this many times and in most cases those offers are rejected or countered. But if you are reasonable, perhaps you can get the house for $2.4M or $2.5M. I have heard many sellers state that they will not just "give" their house away, but are willing to compromise if a fair offer comes in.
Every single buyer and seller's financial and personal goals are different, but as a buyer it is important to keep in mind that many sellers have a personal attachment to their home. Perhaps they have invested a great deal of money and sweat equity into their property over the years. Perhaps it is the place they have raised a family or it was the place during covid that provided refuge during a time of uncertainty. The sellers have the commodity and they have the right to not sell. Just like a stock, if the price is just too low, perhaps they will decide to hold on. When writing an offer, weigh in on a few things: Does this home feel right? Can you afford it? Do you see yourself here for a long period of time? Are you thinking about the house when you are not there?
A great Realtor can work with you as a buyer to understand the difference between a good opportunity and a bad investment. When buying, look for properties that fit your needs for the long term; this sets you up for the highest likelihood of selling with the most appreciation.
As a buyer, do not let fear block you from those good opportunities, and definitely work with an agent who can give you objective insight so you can make the best decision for yourself.
More at www.280-41stSt.com
After two busy weekends, 280 41st Street in Oakland received two offers that were just too low. They were not in line with my expectations, the seller's expectations, and they were low even for this new softened market. Two days later a 3rd offer came in that was viable, and with a little negotiation we are pending!
NOTHING happens in real estate unless you can bring a buyer and seller together.
– Deidre
