The Real Estate Booming Seller's Market Is Not Universal
I have learned that recently, from personal experience. After buying our new place at the end of June at a premium over the asking price, we put our previous home on the market, expecting an immediate sale. I went with our realtor's pricing suggestion, with a price that was well below the median sales price in our city. She said that the market would probably result in a fast offer over the asking price. I was skeptical, but went with her price suggestion. We installed a new roof, had the entire interior of the house painted, and replaced some older appliances, after 17 years of living there.
Three months later, we finally got an offer yesterday, and it was below the asking price. We have accepted it.
Here's the thing: Not every home in every neighborhood is going to be a hot seller. While it is true that there are more potential buyers than there are available properties, location still matters. If your house for sale is not in a particularly desirable neighborhood, it might not get exited buyers bidding against each other for the opportunity to pay too much for your house.
As I said, I was skeptical of my realtor's suggested offering price. I had a number in my head for what I thought the house would sell for. As it turned out, my mental price was within $5000 of the only offer it received in three months. I analyzed the salability based on living in that house on that block and on that particular street. Turns out I was almost exactly right.
All of which goes to demonstrate that realtors don't always know exactly what they're doing. Not every house will be part of the scramble by competing buyers to bid the price up. I should have listened to my instinct and said no to the realtor with the high expectations.
Home prices vary widely, even within a particular market. Houses in the Twin Cities of MN sell for less than houses in California, and for more than houses in Missouri. Setting an asking price has to take into consideration even local and even neighborhood conditions. Eventually, just about any house will sell, but only at the right price. Overestimating a home's value will do nothing but slow down the process.
All of which means that if you're a prospective buyer, you shouldn't be scared off by price trends. Set a price you can pay and keep looking. Don't overpay for a house when one you can afford might be for sale just a couple of blocks away. There are micro-markets within every market area.
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We had two deals fall through; the third was the winner (the buyers actually eyeballed the property and qualified for the financing). We ended up getting our asking price which was set higher than I ever expected. Our realtor hit the number on the mark; we were lucky in that regard.
We're now at the other end searching for a new home. We have the advantage of living in my MIL's former home which she left to my husband 4 years ago. Means we don't have to jump at a property if it doesn't have what we're looking for or is outside our comfort-zone price wise. But also means the choices are limited in a pre-holiday environment.
So, if we have to stay here until after the holidays or early spring? So be it.
This was a huge move for us, 700 miles north. Told my kids if we hadn't been successful selling the property this time, we were probably trapped in TN for good. Just too physically and emotionally demanding for a couple of oldsters. Packing up a 4-bedroom colonial with 23-years of accumulated 'stuff' was exhausting.
But we're here now and I got to hold my grand baby for the first time. Somethings are worth the ultimate effort. 