Buyers Market, What Does That Really Mean? Real Estate talk, New Milford CT.
According to Investorwords.com, a "buyers market" means "a market that has more sellers than buyers". You know, "supply over demand". But what does that really mean? Let me break that down for you....
In New Milford, CT there are currently 79 homes listed between $300,000 to $400,000. Wow, that's a lot of homes. Out of those 79 homes, 4 are under deposit. Uh oh.... that is just a bit over 5%, not so good. So now what? Remember the good ole days when those buyers were fighting like a pack of wild dogs over food scraps for your house? Well, reverse that. You are now in the pack of wild dogs, and that buyer is the food scrap you want, you need!
Make sure your home stands up against the real competition. You cannot price your home according to what you want to sell it for, or what you need to sell it for. If you want or need to sell, you must price your home to sell. No other way around it.
Example. I have clients very interested in a certain home. We have been back twice. The house is of a pleasing design to them, in a good location, but needs work. It is, in my opinion, overpriced by about... oh... maybe $60,000 to $70,000.
- The house needs a new roof.
- The house needs a new deck, which is large.
- The bathrooms have not been updated
- The entire upstairs needs new carpeting
- The basement is just that, a basement. It has not been finished.
- The entire chimney needs repointing, from the bottom to the top, and it is a tall chimney
- The hardwood floors are tired
- Some of the windows need attention, no one repainted the sills
- The house has electric heat, with all original baseboard heating
- Wallpaper and paint look as if they have not been touched since the house was built
- The house screams 1980's!!!!
Here is what I am being told.
They updated the kitchen... no, they replaced the countertop with granite, keeping the cabinets the same 1980's originals. They replaced the original 27 year old appliances recently, yes they did. There is central air, we do love this fact. There is an inground pool. Hmmm, in this area would you like to know what that pool is going to get you? Not money. As a matter of fact, many will run from a pool as they don't want the headache. And this pool is an older one, will need some work.
If you really want to sell this house, lighten and brighten the house, get real with your pricing. I have prepared my buyers with what has sold that is similar to this home, we have good comps. I have also prepared my buyers that they need to be very willing to walk away from this house. They have accepted this fact.
I did learn something else. The seller paid for an appraisal. The seller also refuses to tell the listing agent what the appraisal came in at. I am shaking my head on this one. This tells me that the appraisal came in at a number the seller doesn't want to accept!
So, if you are really ready to sell, if you have to sell your home, make sure you price your home according to the local real estate market. We are in a buyers market in the greater New Milford, CT area. That means stiff competition for you. And if you need to sell and you do not price it according to the market and the condition of your home, well, my guess is you won't be selling your home anytime soon.
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Prudential Adams & Associates, REALTORS®
337 Danbury Road, New Milford, CT 06776
Office: 860.355.2646 ext 19, Cell: 203.460.1775
Email: andrea@andreaswiedler.com
New Milford CT Real Estate, start your home search here.
Below are 2 ebooks I have written, please feel free to download and read them.
"Assemble a Winning Team When Buying Your Home"
"Selling Your Home in a Buyers Market"
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Andrea,
Crazy that sellers live in a fantasy world but it happens far too frequently. Should your buyers submit a fair offer, odds are good it will not gel. House will never sell... I hope the owners read your post!
Yeah. A 1980's house is about as attractive as 1980's hair! I found some old phtots the other day. Ugh!
Andrea,
Yes, some people are not "in" the market.... Sad the other agent has not been honest with their client.
Ann Hayden in Wildwood, MO
Irene, I can be sure the sellers have not read my post, well, pretty sure. But the buyers are willing to walk.
Pat, I have to tell you, I was on caravan when I got your comment, I read it to the people in the car. This started a whole conversation about those 80's doos that everyone had. The laughter was close to hysterics!
Ann, the truth? The agent is related. Well, in a way. Long story.
The seller does see his house as a beautiful mansion...
The buyer does see the house as a small house...
You job is to bridge the gap...
Andrea, they may not want to accept what the appraisal that they paid for came in at, but that is most likely what the next appraisal will come in at and no Lender is going to lend beyond the appraised value. It isn't what the Buyer is willing to pay any more, it is what the house appraises for whether they like it or not.
Sounds to me like you'll be looking at some other homes for this buyer. The sellers sound unrealistic and the home probably won't appraise for what they're looking for.
Joshua, too many things wrong that the buyer doesn't see.
George, you are so right. I am thinking we found another home to look to! I don't think the seller gets it. Perhaps a few more months with no offers will help.
Craig, we are meeting with a builder tomorrow...