What’s difficult about real estate these days is that purchasing or selling a home is a very emotional decision; however, the factors which create the realities of the real estate market are totally economic, i.e. supply and demand.
In most markets, there is very limited supply now , but a lot of interested buyers AND investors, and this creates a multiple offer scenario. For many buyers, after hearing about nothing but “getting a great deal” for the past few years, it’s hard for them to have to up their offer price in this seller’s market. Some people just don’t have the heart- or feel comfortable- playing that ultra competitive game.
For sellers, having to price their home at a foreclosure-level price just to be able to compete, is tough… especially because a lot of these people poured a lot of money into upgrades over the past few years.
Now add in the Human Nature factor– most people want the nicest home in the best neighborhood for the lowest price. This makes for a multiple offer scenario as well. We are seeing a lot of sellers price their homes ridiculously low, just in order to garner lots of offers, and thereby force the price upwards. Back to economics, you can’t offer too much, because then the home won’t appraise. Cash buyers won’t have this appraisal issue, but most cash buyers are watching their pennies, and they are looking for a great deal, too.
Then there’s the waiting game, and that applies to everyone. Waiting for bank to respond, waiting for the short sale approval, waiting for a new buyer after the first one got tired of waiting. These are economic realities, and tough on the emotions.
Bottom line is: economics reigns. One more great reason to work with a full time REALTOR(R) to help you navigate through all the turbulent emotions.
Persistence pays!
C2009 Barb Fischer San Diego Economics vs. Emotions– Who’s Gonna Win?
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