What changes have taken place over the past year? When I talk to clients as they begin their search for the home of their dreams, I must caution them the market may not be what has been stated for the past few months in print and T.V.
As buyers begin the daunting task of wading through the many homes on the market, they begin by stating that they want the most for their money, and to have low monthly payments. These goals are mine as well as I represent my clients. Many Realtors have stepped up their marketing directly to other real estate professionals, by emailing individual listings of their clients. Many of these emails offer incentives to buyers in the form of closing costs or price reductions reflecting “money off the price”. Some of the incentives are also offered to Realtors.
Do incentives make it easier for Sellers to get sell their homes or does it just make buyer clients offer lower prices? The answer is both.
My opinion when it relates to Realtor incentives is to state my personal belief that my duty is to my client. When I determine which homes to show my buyer clients it consists of wants and wishes of the buyer that was determined after lengthy discussions about a multitude of preferences. In other words, the incentives should be on the part of my client and not with my pocket book.
When I work with families that wish to place their home on the market for re-sale, my first goal is to determine what the market sales for “like homes” have been for the past 3 months. Their home is compared to the homes that were sold and a price range is determined. Home sellers usually want to move for different reasons, either to upgrade or possibly to relocate. It is ultimately the owner’s decision what the listing price will be. When this price is determined by Realtors, the price does not usually have built in cushions for price reductions.
Many of the homes that have had long “days on market” are new construction that are left over for the past two years. These may or may not be ideal for some buyers. There is still a great deal of interest in the “established or mature” neighborhoods.
Remember, the only thing that has changed in this market is the hurried, turn and burn sales that have heads still spinning. Mortgage rates are still at historical lows, and good values are available through your local multiple listing service and especially your Realtor.