Vulture Buyers on the Way! July 31
I have been expecting it and now it’s happening. THE VULTURES ARE ARRIVING! These are the buyers who’ve been on the sidelines waiting for the pricing to come down to their acceptable level and when they preceive that to have happened they sweep down out of the sky and pluck up those bargains before anyone else has a chance.
Now don’t get me wrong, this is not meant to be derogatory at all. In fact, I see it as a good sign because it marks a turning point in the real estate market, a very critical paradigm shift. Meaning?? Well most of us agree we’ve been in a buyer’s market for quite some time, several months at least, but until the Sellers are on board as far as pricing goes, there really isn’t much market activity, and we have seen that. (”Ho-hum, I think I’ll go to Italy for a year or so” as a fellow Realtor expressed to me recently).
It is happening now -just starting, so you could be on the leading edge if you wanted, either as a buyer or a seller -although it’s going to be much more fun for buyers. Anyway, I believe we’ve reached that tipping point. One seller in a particular market decides it’s over, no more fooling around, it’s time to cut losses and move on. They demonstate this new attitude with a drastic price reduction. Most likely preceeded by smaller, incremental price drops, but this is the BIGGIE, they are through messing around.
The example I witnessed in our market this week was a NEW house- new construction, never lived in, that plummeted $145,000 from it’s previous price, and $185,000 from it’s original price. Now at $380,000 it’s a new low in the Waikoloa market.
Doing what any self-respecting Realtor would do, I made a few calls to see if I could drum up any interest.
This house is going to sell this week and don’t even think about less than FULL PRICE because very likely there will be multiple offers.
Well, one party was game but before I could get a return call from the listing agent to even show the house, they had 4 offers on it! Two she said, were cash offers, and at least one was over asking price!
So how do sellers take part in this paradigm shift? Well if they can see the writing on the wall, they will quickly follow suit, but ahead of the pack and do the BIG price adjustment, gulp down their lofty expectations (yes, even losses), and get it sold. Once our example house sells it becomes the newest, most recent comp for appraisers and buyers, and then guess what? Prices will have to fall to sellable levels.
Before things stablize, Buyers can jump in for the really good deals, but don’t expect to be successful if you are not prepared. Prepared with cash (or at least an impressive down payment) or darn good supporting documents to demonstrate that you can pull it off. As for sellers, who knows, maybe if you are one of those akamai sellers willing to jump in (or I should say jump “out”) ahead of the pack, and you have other assets you may even be able to turn around and scoop up a bargain yourself! It could ease the pain, you know, sort of like going out to buy a new puppy after losing your favorite pet. It could be therapeutic.
But like it or not, play or not as you choose, it is happening. The Vulture Buyers are here, ready willing and able to turn this market around! I am more than ready to see it happen.
Aloha, Mike
RE/MAX Pacific
On Hawaii: 885-5557
Toll Free: 800-500-4895
My “Sell” Phone: 808-896-1943
http://www.MikeSells.com
http://www.WestHawaiiBlog.com



















