Sellers Market?? Oh the Power of the Media!
Exactly where does misleading information come from? As a property owner, I jumped up to put my ear closer to the radio the other day when I heard the news announcer state that there was good news...the real estate market had now become a "Sellers Market"!!! Sales were up in September. The Real Estate sector was on it's way to a stellar recovery and that was really good news to me, the Property Owner.
However, on the other side of my cheery personality was the perplexed Realtor. Where did that news report come from? It seemed to me that the Real Estate market in Hamilton wasn't quite the bustling Sellers market that was being portrayed. I immediately logged onto my MLS system to take a look at recent sales. Yes, properties were selling, but in some areas the prices buyers were actually negotiating were more than 10 percent less than what people were asking. I knew that was the case, because I have been representing a lot of buyers lately. Of course, houses that were priced extremely well, even a handful that would be considered below market value, were garnering multiple offers and selling for over list price.
In my opinion, a well priced house in the $50,000 to $250,000 price range will sell like a hot cake, however, if it's overpriced by as little as $15,000...it will sit, until it's either reduced, or some gutsy buyer decides to send their Agent in with an offer.
Over the past few weeks I've seen many a Seller play hardball with the only Buyer that they've seen in months. The Sellers, perhaps buying into media reports, mistakes the interest of this one buyer as an upswing in home values, and that's not the case at all. Buyers will not pay more than market for a home and their financial institutions and CMHC will not approve the financing for an overvalued home, just in case they try!
To all the Sellers out there- "Your first offer is usually your best!" A qualified Buyer cannot be expected to pay more for your house because you're discharging a mortgage, have a line of credit to pay off or a stack of visa bills. A qualified Buyer is not there to buy your problems, they are only there to buy a piece of Real Estate!
It's extremely sad to see Sellers reduce the price of their house below the price of an offer they had turned down months prior. Be realistic in setting the price of your home! Not only will it sell quicker, it will reduce your stress level and put more money in your pocket in the end.