Buyers & Sellers, Coming to Terms?
There has been a lot of talk about the expired Tax Rebates, and current Real Estate conditions. What is happening in the Real Estate Market? Are Buyers writing offers? Do Sellers need to lower their prices? Are the rates still low, or have they gone up?
Talk around the office & in the field shows a general slowing down in activity. Buyers are still visiting Open Houses, but only the serious Buyers - at well priced homes. Many Sellers have come to realize that they are not going to get the amount of money they would like for their property, but even the realistic sellers are not getting the number of showings they would like. Buyers have gotten more demanding since the expiration of the Tax Rebate. In many cases, they want to see every home available that meets their criteria. Once a house has been chosen, they are offering much less than the Seller is asking. If the offer does not get accepted, they are moving on to the next house on their list. Once their offer is accepted, negotiations seem to begin again after the home inspection. Today’s Buyer wants their home to be in tip-top shape before they move in! All gone are the days of “I can fix that myself after we move in”. They know that most Sellers would rather fix the problem, than have to start over looking for a new Buyer, and have to disclose any past issues.
Sellers are being to realize that it is truly a Buyer’s Market. If they don’t know it when they first come on the market, they learn it all too quickly. Lack of showings, or even worse, many showings with negative feedback from Buyers often serve as a strong dose of reality. If the Seller priced the home low enough to compel a Buyer to write an offer, they still run the risk of more concessions after the inspection. In some cases, Sellers simply cannot afford to make another $5,000 in concessions. This would push them underwater, forcing them to arrange the sale with the bank prior to a successful closing. Even the lowest interest rates we have seen in decades are not doing much to persuade Buyers to write offers. Loan officer, Denise Hoernke, states that Wisconsin Mortgage Corporation is offering 4.75% for FHA Mortgages, and 4.625% for a Conventional mortgage. This is great news. Everyone knows that the lower the interest rate, the more house you can afford.
So, where are we at in the Real Estate Market? Let’s recap: Rates are under 5%, prices are incredibly low and Buyers are looking for a deal. All things considered, I would say we are doing our best to recover. When will this recovery finally take place? Only time will tell…One thing is for certain, we are in it for the long haul! The Kuchta’s, Kelly & Colleen.
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Colleen Kuchta
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