I also note that you bought in 2008- that does not sound like you took your own advice since the market tumbled since then. I don't like condos as investments though I have a few- too hard to deal with associations that can pass rules that devalue your property (like prohibiting rentals then what do you do?).
The truth is no one knows where the bottom is, and just like everything else some of the more greedy buyers will be left out at some point. Not all buyers have to buy right now but many should....
A smart buyer ,who is patient, should play the waiting game with a foreclosure/short sale and offer 15-25% below current market price. Lot's of deals out there especially since the banks are getting more of your and my stimulus money.
So, because of all these foreclosures (50% of the closure rates) people are waiting for the home seller to drop their prices.
Give it a couple of years and 20-30% more reduction in prices and things will be back to normal.
Here are some MORE numbers to show why buyers are and should stay on the sidelines.
Good reading... :)
Like I said, if you want to or have to buy ,offer 15-25% below asking price...heck, I dare say 30% now!
Read my numbers again and then compare them to the average % drop in the Chicagoland area...Do the math...I'm way ahead of the game.
Also, if you do your homework, which I'm sure that you do being the good Realtor that you are and you will find pleanty of great associations out there that are easy to work with, then again, like you said, you have seen a lot of people do stupid things out there. Those are the ones that get screwed.
My point that I was trying to make is that buyers should wait if they think that prices are going to drop, which as sure as gas prices are going up, they will. I pulled the trigger because I was able to find deals with the short sale and foreclosure market in 2008. No seller would deal with a low baller like me....hence they go to association meetings and complain how someone is buying up on the cheap.
I hate to disagree with you buddy but my 2 closures in 08 were purchased 22% and 28% below market. One being a short sale and the other one was a foreclosure (Both, pretty much turnkey buys). As I type this, I am waiting for a response from the bank on another unit that I have offered 32% below the asking price and it looks like that one will come to fruition as well.( Funny side note, I was at the townhouse association meeting last week listening to people complain that someone was buying up units on the cheap and that they thought that their units were worth way more...wrong).
Not all buyers have to "BUY RIGHT NOW" and are on the sidelines waiting for the prices to drop further (ask my agent, he has tonnes of buyers waiting for the great deal).
Trust me, I've been buying and selling Rentals for 20 years now and I've yet to get "Screwed", although I will agree with you, I have seen stupid people not knowing what they were doing and getting screwed.
Then again, if everyone knew what they were doing then their would be no need for a web site to pose Realestate questions on.
The best foreclosures that come on the market are sold before I can even get my clients inside.
If we are lucky enough to get inside (no one has stolen the keys) the best ones have multiple bids above listing price. So sorry you are wrong about the 15-25% below asking, that may work in some cases but it depends. The list price never matters at all and is the least relevant consideration. The question a buyer should ask is what a home would be worth right now with some cosmetic repairs.
The only thing that buyers have figured out is that they need to buy right now, that is why I am swamped.
Whenever someone has a theory, I always ask the same question. Have you actually purchased anything using your methods? People always mention great deals their friends got, then when I look up the deal I can see they actually got screwed.