Gap Between Buyers and Sellers Expectations
It is not just our social interaction which is changing. Because of recent events we are also noticing a change in the way business must interact. Obviously, even the way we buy and sell our real estate are going through dramatic changes as well.
Because of the impact the current crisis has had on our industry mini home buyers are in search of a more competitive deal. Studies indicate however, that sellers are holding steady on their price and our not interested in offering price reductions.
According to the most recent NAR Flash Survey (a survey of real estate agents from across the country), agents were asked the following two questions:
- “Have any of your sellers recently reduced their price to attract buyers?”
Their answer: 72% said their sellers have not lowered prices to attract buyers during this health crisis.
- “Are home buyers expecting lower prices now?”
Their answer: 63% of agents said their buyers were looking for a price reduction of at least 5%.
What We Do Know
In today’s market, with everything changing and ongoing questions around when the economy will bounce back, it is interesting to note that some buyers see this time as an opportunity to win big in the housing market. On the other hand, sellers are much more confident that they will not need to reduce their prices in order to sell their homes. Clearly, there are two different perspectives at play. If you are a buyer in today’s market, you might not see many sellers lowering their prices. If you are a seller and do not want to lower your price, you are not alone.