Ongoing Seller’s Market Tests
Buyers’ Resolve, Patience
Every housing market poses its own “gut check” question.
In a Seller’s market like today’s, the “gut check” question Buyers must wrestle with is, “how much do I really want this particular house?”
That’s especially true if there are multiple offers, and the winning offer is likely to be over the asking price — sometimes well over.
My advice to Buyers in this predicament: “the right price to offer is the price you can live with if you get the house . . . and what you can live with if you don’t.”
Flip Side of Coin
In a Buyer’s market — remember those? — Sellers have to face their own version of this question.
When Buyers are scarce (or non-existent), many Sellers receive offers well below their asking price — if they receive any offers at all.
Often their realtor can work with the prospective Buyer to improve the offer . . but not always. The question such Sellers must ultimately weigh is, “If I pass on this Buyer’s offer, am I willing and able to wait for another?”
Regardless of market conditions, “fair market value” for any given property ultimately isn’t about the Comp’s (comparable sold properties), general market statistics, historic cost, etc.
Rather, it’s what a financially qualified Buyer is willing to pay . . .
