Now Is Not The Time To Reach For An Unrealistic, High Price
A report from GlobeSt on Florida. "Not everyone but a majority would probably agree that Miami’s condo market is full — even a Brickell headquartered company that has long been known for its successful developments here. Key International Co-President Inigo Adrid tells GlobeSt.com: ' The number of condo projects that have delivered in the last few years has resulted in an oversupply of inventory in Miami’s market.'"
The San Francisco Chronicle in California. "Patrick Carlisle started noticing a change late last summer. After what he describes as a 'furiously competitive market for buyers, perhaps the hottest market since 2000,' the chief market analyst for Compass began to see a discernible shift throughout the Bay Area as autumn approached."
"'Appreciation rates declined or even went slightly negative on a year-over-year basis, price reductions and expired listings soared, overbidding decreased, inventory grew and sales declined,' he said. 'However, the magnitude of changes varied enormously by county, and as is often the case in times of transition, market signals were schizophrenic, some negative and some positive.'"
"Even with the mixed signals, Carlisle believes 2019 is unlikely to be as competitive a marketplace as buyers have experienced since the market recovery began in earnest in 2012. The recent slowdown has a lot to do with national trends, like rising interest rates and stock market volatility, as well as local affordability issues, he argued. That being said, he doesn’t expect a market crash either, especially as several big tech companies are likely to IPO in 2019, 'unleashing a tsunami of new wealth.'"
The McHenry Times in Illinois. "Illinois' highest-in-the-nation property taxes are eroding home equity and depressing home values across the state. This report is part of a SYHN News Service series on recent home sales that demonstrate the consequences."
"The home: 3513 Brayberry Lane, Crystal Lake. It includes more than $100,000 in renovations and design upgrades. The purchase: In November 2009, Hsiao Yunlung and Ran Tao paid $430,000 for the home, or $499,376 in today's dollars. The sale: According to Zillow, the home is currently being listed on a contingency for $385,000, or $114,000 less than the original purchase price, in today's dollars."
"Yunlung and Rao originally listed the home for sale at $430,000 in May 2018. The price dropped several times before hitting $395,000 in December 2018. Yunlung and Tao paid $61,019 in property taxes between 2013 and 2017, or 14 percent of the sale price."
From Thurston Talk in Washington. "It’s no secret that the past few years have been hot ones in the residential real estate market of Thurston County. Homes selling as fast as agents could list them and prices rising dramatically have been the rule for some time, but change is coming. Real estate agent, Casey Jones, has some great ideas for buyers and sellers looking to negotiate the home real estate market as it begins to level out. "
"Patience is the key as the market cools down. 'Buyers have more choices, so houses are not selling as fast,' says Jones. In October, homes priced at market took around 11 days to sell. This is up from eight days in May. 'It will likely take longer in the next few months,' Jones adds."
"Set your list price just below the top prices of competing homes. Now is not the time to reach for an unrealistic, high price. Otherwise, you risk missing ready buyers in your price range. And be flexible on your price. There will be fewer competing offers as more inventory becomes available. Buyers want to feel that they’ve negotiated a price that is a little more reasonable than your asking price."
"Buyers looking to take advantage of the more reasonable market should also keep some good strategies in mind. Consider including a provision for an additional down payment, in case of low appraisal. 'This assures the seller that you are strong financially and will not walk away from the purchase if the appraisal happens to come in lower than the agreed upon purchase price,' advises Jones."