Jim,
With the current market conditions it seems that getting a seller to price correctly is harder than getting a buyer to put in an offer on a property. It is sometimes hard for seller's to realize that the time, money and sweat equity that they have invested in their homes does not necessarily correlate to current market value.

The Buyer on the other hand has the opportunity to leverage inventory saturation collectively across the board in the resale, new home and foreclosure markets. Currently Buyer's can have an A, B, C and D plan. In neighborhoods where there is a lot of choice Buyer's can put an offer in on their favorite and then continue to work there way down the list as their asking price is not met.

On the other hand, the Seller may be limited to more finite constraints, i.e lower price, stay put, rent , lease or lose their home and each with there own set of consequences.

Jim,
Getting sellers to price their property correctly is still a challenge. However, as time moves on there will be more Pending and Closed transactions available to show sellers that the landscape has shifted. The next few months will provide realtors, buyers & sellers with greater market data to make educated decisions on both pricing and offers which will be the key to a more stable market. In the meantime, there's plenty to choose from and an overpriced listing will do nothing but make listings that are priced right look like the better option. So, to answer Jim's questions; Sellers are becoming realistic only after longer market times have not yielded a sale; Unless it's the prefect home for their needs buyers will move on and not make an offer on an overpriced home. In the middle are all the transactions that continue to take place that we'll be able to use as comps going forward.

I agree with Carrie as well--I think it is at this time, easier to have potential buyers submit offers on overpriced listings because they technically have nothing to lose. Sellers have the mentality that if they price their house "correctly" then that is the max amount they will receive in the end and most of them aren't willing to accept the facts and the reality of today's market. But buyers today seem to understand and know that making an offer is just the first step of a negotiation process.

I have had a few borrowers that have been willing to make offers on overpriced listings. Of course the offers came in low but because the home appealed to them, they had the mentality that it never hurts to ask, so the offer went in. With a few rounds of negotiation, the offer went through and three weeks later they were homeowners! So I suppose in the end it is the sellers that are the more difficult. I hope that helps, good luck Jim!

Jim,
I agree with Carrie... but, of course, it's a regional thing and also varies according to the individual client and/or seller. The sellers in my area are slowly getting more realistic. Although every once in a while, a new outrageously overpriced listing will pop up on the MLS and become the office joke of the day...

Actually it is different with each client. I do find it easy to get the buyer to make an offer on an overpiced listing. It is the seller that seems to have a problem with this practice. I find sellers get offended when an offer comes in at the actual value of an overpriced home! My buyers tend to be very practical in this matter. They will only pay what they feel it is worth based on the comps. You show the same comps to the sellers and they are still offended. I find it much more challenging to get the seller to be reasonable about their selling price. Yes, even in this market!