Why even Buyers don’t like the Buyer’s market
In my last post I talked about the seller’s in today’s buyer’s market. Now I’d like to turn the focus onto the buyers.
Every single buyer out there right now is a bargain hunter, as they should be in this buyers market but it’s a very hard time for sellers. I was reflecting on the seller’s market of the last few years and found that it was much less painful for both parties involved. Certainly, sellers were thrilled to sell their properties at all time highs but the buyers also seemed excited to score one of the “high demand” properties for their own. I’m sure paying the price hurt but since there was so much competition for ownership, the ultimate buyer often felt like they had secured a “prize,” which seemed to soften the pain of the higher price. Both sides were happy. The seller had sold and the buyer had a property they were confident would be worth even more next month!
In contrast, only the buyers are happy in the buyers market, and even many of them are not comfortable. Strangely enough, they too like to see prices going up, even if it costs them a bit more, as it gives them a feeling of security to be able to think that once they close on a property it will most certainly appreciate. Even though the low pricing is great now, many are afraid to step in and buy the bargains that are truly out there, because they don’t know when the upturn is coming. Some have told me they want to wait for “the bounce” before they buy. In other words, many buyers only want to buy when property is appreciating! Of course, if they wait for that time to come, they’ll be paying more and in most cases, they’ll miss the turn around until it’s well underway. It’s a funny situation.
As for the sellers, they absolutely hate this buyers market. Many cannot get past the highs of 2005 and complain bitterly about the low offers coming in now. My own experience is that I am working twice as hard and accomplishing half as much, because both buyers and sellers need enormous amounts of information to make an informed decision.
Anyhow, I though I’d try to shed some light on what is going on here from my point of view as I stand in the trench! Please call or email with any questions.
Aloha,
Elaine Schaefer (R, GRI, ABR)
Broker in Charge – Princeville Resort Office
Graduate, Realtor’s Institute
Accredited Buyer’s Representative
Top Producer 100% Club
RE/MAX Kauai
Princeville Resort Office
POB 223632
Princeville, HI 96722
cell: 808 639 2935
home fax: 1 808 440 4552
email:soldonkauai@yahoo.com
website: www.kauairealestatenow.com
blog: www.blogs.alohaliving.com/princeville-condo-sales
……you can have your own piece of paradise
ask me how!
August 24th, 2007 at 3:22 pm
Hi Elaine,
Another wonderful and thoughtful post! I have been trying to figure out this market where prices are going down and yet Buyers still are not buying. Also many of our Sellers have been willing to reduce their price, but when they ask me for the “magic” number, I am at a loss. I just don’t know what it will take at this moment in time to bring the Buyers back in the numbers that will get the market going again.
We all know it is strictly a “price driven” market, but what the right price is, is very difficult to figure out. Comps are little value because something already sold most likely went in escrow at least 45 days ago or longer (not to mention it may have been listed 3 months prior to that -and what sold then for a certain price is different that what is selling right NOW.
So, I guess you could say neither Buyers, Sellers nor agents are happy right now!
Aloha, Mike Kerr
RE/MAX Pacific – on the Big Island