Saturday, September 22, 2007

"It's A Buyers Market", But...



...Don't even think about...

Making a low-ball offer



By Amy Hoak
MarketWatch
Article Launched: 09/22/2007 01:41:01 AM PDT

CHICAGO - Home sellers are not automatically turning up their noses at offers that come in far below their asking price these days as prices stagnate and the inventory of homes for sale remains elevated in many markets.

But buyers who do ask for deep discounts still risk offending sellers to the point where they quash any deal. So before making an aggressive offer, some homework is in order, real estate professionals say. Further, buyers need to effectively explain why the price of a home should be lower.



Maybe THIS is the problem:

Homeowners Just Don't Understand Value Of Homes



Posted By:Diana Olick
Topics:Housing | Real Estate
Sectors:Construction and Materials

A new survey out today from Reuters/University of Michigan looks at homeowners’ perceptions of their own homes’ values. When the survey flashed over the wires this morning, my email lit up with all the “Alert” desk folks at CNBC saying, “Omigod, this is huge.” I don’t agree. I say it’s not huge enough.

The survey’s headline says, “A record 26% of U.S. homeowners say the value of their homes has fallen during the past year.” Further, 21% of homeowners polled in September expect the value of their home to decline in the year ahead. The survey finds even bigger numbers if you look at folks just in the West, but that’s an overall national picture.

Ok, so 26% is a record, but I have to ask, why isn’t it higher?? The latest survey from S&P/Case Shiller, which looks at the nation’s top 20 metros as well as a full U.S. National index, shows nothing but negative now, and given the trend, into the near future. The national index shows a price drop of 3.2% from a year ago, with the 10-city composite down 4.1% and the 20-city composite down 3.5% from a year ago.



Oh, I get it. the Greedy Sellers are completely out of touch. Hmmm, how much longer can they keep making adjusted rate payments? I am still holding my breath!


3 comments:

Anonymous said...

Pretty soon, it's going to get to the point where all offers are lowball offers. The sellers will have to seriously consider them, lest they want to ruin their credit for the sake of ignorance and denial.

Anonymous said...

wait for the REOs.

The North Coast said...

So the sellers will get "insulted" by a low-ball offer, huh?

Well, then we won't make ANY offers.

We're still only a little way down the other side of the slope. We're at the "fear" stage, but we are not yet at the "capitulation" stage.