From Engineering on August 18, 2008 in General
Gone are the days of bidding wars where you literally had buyers tripping over themselves trying to win your home. As a homeowner trying to market your home in the current market, you are faced with a situation that couldnt be more the opposite. We have had our home on the market for a month now, and although several people have stopped to take flyers, we have yet to have one showing. So why are so many people interested but simply just tire kicking? In consulting with our realtor, it appears to be a combination of factors.
First of all, there is still a glut of foreclosure properties that are drastically causing prices to fall. Buyers are expecting to be able to offer ridiculously low prices, and have plenty of other homes to move onto if rejected.
The second explanation is that many of the shoppers are also homeowners trying sell. They may love our home, but their hands are tied, much like the rest of us.
The third factor is that lending institutions are finally following the qualification guidelines they should have been adhering to all along. As a result, buyers are having a more difficult time qualifying for financing and coming up with a down-payment.
As bleak as this all sounds for sellers, it will get better; we just dont know exactly when yet. Some analysts are already seeing improvement in some areas of the country; others are more skeptical and pessimistic about the near future. Regardless of what happens in the short term, real estate has historically always been a good investment over the long-term. Patience is essential in this market. We are just continuing to make our home as nice as possible as our budget allows, and feel confident that we will someday sell and recoup our investment.