Good Morning Everyone,
You have heard the National Association of REALTOR® TV Ads saying that all markets are local, but do you really know what it means? It means that what may be true in one community does not necessarily hold true for others. In this case, what you may see happening in the larger metro markets of Arizona is not necessarily going to carry over to our Mountain Community. Sellers in the White Mountains may WANT to sell, but for the most part, they don't NEED to sell.
As a result what you might consider a reasonable in your area, is probably going to be seen as in insult to the seller in our area. There is usually room for negotiation on any listed property, but an insultingly low offer on your favorite home is most likely going to be rejected out of hand by a seller in our area.
Why is that? Well, if you insult the seller with your offer several things will go through their minds. First, you are not serious about buying their property and they could spend a couple three weeks with their property in a pending status only to have you walk away before closing. They may see it as an attempt to keep someone else from buying their property while you continue to look around for a better buy. Second, they may perceive the offer as being from a Buyer who isn't qualified for the Listing Price of the home. In that case they are going to feel betrayed by the Agent representing the buyer or just be angry because they feel that buyer has wasted their time while they might have missed an opportunity to sell to another buyer who is qualified.
Does this mean that a seller won't consider an offer below the asking price? Of course not, but if they have a good agents representing them, and most do, they have been told what their property should sell for and they are prepared to meet that price. They know what their bottom line is and they are not going to accept less than that number.
Markets really do vary from one community to another and in the White Mountains of Arizona, the market is very different than it is in the larger Metro Areas. Even though sellers here have lost value just as they have in the larger areas, they are not in a situation where they have to sell at any cost. If they don't sell it this year, they'll just take if off the market for the winter months and try again next year. I can almost guarantee that when that property appears next season, it is going to price higher.
My point is that no matter what is happening in your local market, you cannot expect the same circumstances to follow in another one. You need to listen to your agent and if you want a particular property you need to be prepared to pay a reasonable price for that property and formulate your offer accordingly. If you don't, you will likely lose your opportunity to buy that one property that you really really wanted. No one wins and everyone loses. Make it a winning effort, not an effort in futility.
Thanks for reading. Until next time.
Sandra Paulow, Associate Broker, REALTOR®, GRI, SFR