Great Deal or Great "STEAL"?

The sellers’ home is gorgeous. The location is most desirable. They lowered their price twice and just in time. As evidence that they are well priced, two offers were about to be written up and faxed over to the listing Realtor. The listing Realtor advised both of the buyers’ Realtors that they were in a multiple offer situation. (Multiple offers are rare in a buyers’ market unless the property is a great deal.).
One of the buyers’ Realtors said “My buyers have been looking for over one year with me for just the perfect home. If they don’t get this house they’ll be crushed!” The other Realtor called to say “Oh, no. You might know it. Just when the perfect house for my guys comes along, there is another offer.”
Both buyers’ Realtors advised their buyers accordingly and they both submitted their “best and final offers”. To the surprise of the listing Realtor and the sellers, neither offer came close enough to the now under market price of the property that these buyers “just had to have.”
As evidence that sellers in increasing numbers have had just about enough of buyers still looking for a great “steal” rather than a great “deal”, the sellers rejected both “best and finals” outright to the surprise of the buyers and their Realtors.
Within days, the same listing Realtor received an offer on another property. The buyers explained how they had arrived at their low offer by sharing their “personal perspective” on the market as well as their “unique mathematical formula” by which they had “calculated the true value” of the property they desired. The sellers responded to the buyers’ “personal perspective” and “unique formula”. The buyers need not “calculate” in the cost of a moving van too soon.
When the print, TV or radio media report conditions in the real estate market, they do so after researching many factors that are most often out dated by the time they are reported to the public. The true test of real estate market success can be found in the “sold” statistics. The word “sold”, however, is past tense and so, by definition, is that report. By the time the report appears, it is often based on the last two or three quarters, not on what is currently happening.
In order to take today’s real estate market pulse accurately, the stethoscope must be placed directly over the beating heart of the market. Realtors sit at sellers’ kitchen tables and take those pulses. Realtors report disappointing news back to their buyers and take those pulses.
The market is shifting right in front of all of us.
Sellers and buyers have grown used to the vernacular that reflects the buyers’ market. Buyers commonly use the term “low ball”. Sellers say they will not “give it away”. As a result of the pricing correction we have all experienced over the past few years, the property values stand corrected. The feeding frenzy is over and it’s time to recognize the signs of a normal market shift. Unreasonable offers are being rejected outright rather than being countered by the sellers.
The rates are down as expected as are the property prices. It’s an excellent time to get a great deal. It is also an excellent time to reflect on the 7th Commandment rather than lose an opportunity to own the home you “just have to have.” Good luck, shoppers!