I hear it all the time, œwhat is the buyer/sellerthinking? Are they crazy? In a RealEstate market like we are in, it isn't unusual for buyers and sellers to bepretty far apart when it comes to price. To prove this further, a new studycame out with some interesting numbers. According to RIS Media, 76% of homeowners believe their home is worth more than their agent's recommended listingprice and 68 percent of home buyers say homes are overpriced.
When you look at these numbers, it makes you wonder how ahome is every sold since it seems buyers and sellers are so far apart. Despitethis, homes are selling at one of the fastest clips in recent time, so whatgives? I believe it is all about mindset and buyers and sellers expectationsgoing into the transaction. The initial impulse is to steal a home if you are abuyer, regardless of how a home is priced, because that is what we have heardyou are supposed to do in a buyer's market. If you are a seller, it is a givenyou will take pride in your home and like it above all others, thus overvaluingit. The key then is pushing these impulses out of mind and stepping into theother party's shoes for a minute.
When we get to a stalemate in negotiations, I always recommendmy buyer or seller consider what the other party is thinking. If a buyer made alow ball offer, I ask, what would you be thinking if you were the seller? Wouldit make more sense to just lower the price to try to attract more buyers thanto take such a major hit? And if you arethe seller with a lowball offer, are you planning to make a low ball offer whenyou buy your next home? I can't tell you how many sellers cuss out a buyer fortheir low ball offer, then turn around and do the exact same thing. Because ofthis, avoiding taking an offer personal is key.
When you are considering making an offer, keep this figurein mind. While you think the house is overvalued, realize the sellers thinks itis undervalued, which can make a low ball offer very insulting. And if you areselling your home, consider that almost three quarters of all buyers are goingto think your home is priced to high, so price it as your agent suggests so thebuyer has no choice to jump on it before everyone else does. Deals are being made every day and steppinginto the other party's shoes can certainly make the process much smoother andresult in getting you a better deal in the long run.
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