(Too) Great Expectations
After the longest — and most severe — housing downturn in most people’s lives (those under 80, anyways), real estate is finally on the mend.
In most markets nationally, prices are rising, short sales and foreclosures are down, and interest rates are still in the cellar.
What’s not to like?
For Realtors, two things: 1) a scarcity of listings; and 2) unrealistic Seller expectations.
Overplaying an Improving Hand
Issue #1 has already been amply discussed on this blog and elsewhere.
However, if you didn’t know, the number of Twin Cities homes for sale at the moment is the lowest in over a decade(!).
Which leaves Sellers who — noting all of the above — feel they have a green light to ask . . . whatever they want.
One thing that hasn’t changed is how Realtors (and Appraisers) establish value.
That is, by looking at trailing prices for closed transactions, then extrapolating — just a bit — into the future.
Sellers may be holding more cards than they have in years, but those who overplay their hands are (still) likely to take longer to sell, and fetch less, than if they’d priced appropriately from the get-go.
Trust me on that one . . .