I am seeing a huge disconnect between buyers' ideas about prices/condition and seller's opinions of the same topic. In some cases they're $100000 or more apart. What about your area?

Question

Answers Subscribe to Answers

Sort

Rainer
279,878

Dipti Thakkar

LAER Realty Partners - Andover, MA

On a team with Praful Thakkar

It happens.

Jun 05, 2018 10:33 PM

Upvote

1

Rainmaker
630,251

Ajay Pandya

e-Merge Real Estate Unlimited - Columbus, OH

Realtor Ajay Pandya

It is always like that.

Jan 24, 2018 10:32 PM

Upvote

1

Rainer
46,525

Denise Delozier, Realtor, CNE

Reliant Realty ERA Powered - Nashville, TN

Nashville, Brentwood, Franklin & Middle Tennessee

Hi Teri. It sounds like what your buyers need is to a little help with putting their feet (ever so gently) back on the ground. When I find myself if that situation, I pull as many recently closed comps as I can find in similar or even worse condition, and one by one, point out the final list price (after any and all price reductions) vs. the actual sales price. The buyers in this area are usually very surprised to learn that the difference between the two numbers is usually less than 5%. That is true regardless of condition, since the list price usually reflects that pretty well in the first place. Unfortunately, even with the facts staring them in the face, some buyers will still insist on making a super low offer. Most of the time, it's because they are not in any hurry and they just want to see how low the Seller will counter back. They will have to learn the hard way that offers that are way off like that usually just get rejected with no counter at all ... and it's a lot harder to try to re-engage with that same Seller on a 2nd attempt. There's just something about facing "attempted robbery" that really offends the Seller and makes them very leery of the Buyer. Hopefully, the analysis of the comps will convince your buyers and save you both a LOT of wasted time and disappointment. Best wishes to you!

Jan 26, 2015 08:13 AM

Upvote

1

Teri Buchanan

Napa, CA

Ambassador
6,418,755

Bob Crane

Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI

Forestland Experts! 715-204-9671

Buy low, Sell high, part of what everyone wants.

Sep 20, 2019 06:47 PM

Upvote

Rainmaker
4,319,773

Praful Thakkar

LAER Realty Partners - Burlington, MA

Metro Boston Homes For Sale

Same here.

May 26, 2018 09:45 PM

Upvote

Rainer
8,236

Teri Buchanan

Napa, CA

I wish seeing the comps were as persuasive as you guys seem to find that exercise. Buyers and sellers -- and I'm not talking about specificic people I am currently working with -- seem, in general, to be relying more on what they find on the Internet and not listening to what agents have to say. They walk in the door with their minds made up. That's where I see the big gap between expectations and reality.

Jan 27, 2015 02:56 AM

Upvote

Rainer
45,957

Andy Madrid

Hawaii Coast Realty, LLC - Kailua-Kona, HI

Expertise, Professionalism, and Service

I'm in Santa Barbara and for the most part buyers and sellers once there educated are pretty close as far as price is concerned. But we all have buyers that think they still get a ton for nothing and that it is a buyers market when in reality it's much more balanced. And you will always have sellers that want to price the home hi because they assume they're going to have to negotiate down to make the sale. It is still very tough to get them to price with the market will bear instead of what they want.

Jan 26, 2015 09:15 AM

Upvote

Rainmaker
3,986,308

William Feela

WHISPERING PINES REALTY - North Branch, MN

Realtor, Whispering Pines Realty 651-674-5999 No.

I live in an area of much smaller prices. I think right now buyers still thinkit is a buyers market...not so much and in fact it is more like a sellers market

Jan 26, 2015 08:36 AM

Upvote

Rainmaker
927,795

Ron Marshall

Marshall Enterprises - Saint Michael, MN

Birdhouse Builder Extraordinaire

In our area, the gap isn't that large, but all real estate is local. $100,000 would be huge here in Minnesota, just northwest of the Twin Cities.

Jan 26, 2015 07:40 AM

Upvote

Rainer
8,236

Teri Buchanan

Napa, CA

Thanks, Gabe. I can't remember the gap being as wide as it is now but I'm glad to know it's not limited to Napa/Sonoma! How do you cope with it -- especially with buyers?

Jan 26, 2015 06:18 AM

Upvote

Rainmaker
4,800,132

Gabe Sanders

Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL

Stuart Florida Real Estate

I think it's always been like this Teri. Same here.

Jan 26, 2015 05:05 AM

Upvote

Back to Top

Hi Teri. It sounds like what your buyers need is to a little help with putting their feet (ever so gently) back on the ground. When I find myself if that situation, I pull as many recently closed comps as I can find in similar or even worse condition, and one by one, point out the final list price (after any and all price reductions) vs. the actual sales price. The buyers in this area are usually very surprised to learn that the difference between the two numbers is usually less than 5%. That is true regardless of condition, since the list price usually reflects that pretty well in the first place. Unfortunately, even with the facts staring them in the face, some buyers will still insist on making a super low offer. Most of the time, it's because they are not in any hurry and they just want to see how low the Seller will counter back. They will have to learn the hard way that offers that are way off like that usually just get rejected with no counter at all ... and it's a lot harder to try to re-engage with that same Seller on a 2nd attempt. There's just something about facing "attempted robbery" that really offends the Seller and makes them very leery of the Buyer. Hopefully, the analysis of the comps will convince your buyers and save you both a LOT of wasted time and disappointment. Best wishes to you!
I wish seeing the comps were as persuasive as you guys seem to find that exercise. Buyers and sellers -- and I'm not talking about specificic people I am currently working with -- seem, in general, to be relying more on what they find on the Internet and not listening to what agents have to say. They walk in the door with their minds made up. That's where I see the big gap between expectations and reality.
I'm in Santa Barbara and for the most part buyers and sellers once there educated are pretty close as far as price is concerned. But we all have buyers that think they still get a ton for nothing and that it is a buyers market when in reality it's much more balanced. And you will always have sellers that want to price the home hi because they assume they're going to have to negotiate down to make the sale. It is still very tough to get them to price with the market will bear instead of what they want.
I live in an area of much smaller prices. I think right now buyers still thinkit is a buyers market...not so much and in fact it is more like a sellers market
In our area, the gap isn't that large, but all real estate is local. $100,000 would be huge here in Minnesota, just northwest of the Twin Cities.
Thanks, Gabe. I can't remember the gap being as wide as it is now but I'm glad to know it's not limited to Napa/Sonoma! How do you cope with it -- especially with buyers?