Are you kidding me has the worm turned?
Are you kidding me is what home buyers are screaming these days. Buyers may be right when they say are you kidding me? No way will I pay that much money for your home. And they may be right.
The figures for this week for home in Redwood City show the LP:SP ratio has been trending downward since July! Buyers are not paying the amount for a home that they were earlier in 2016.
Four months straight the offering prices buyers are bring to sellers have been on a steady decline. Sellers should take heed to this trend.
What this means to a homeowners who want to sell their house is list at a correct price. If you list your home to sell over market, buyers now know home values and won’t make an offer on your home.
What’s a home seller to do?
Sellers if you price your home too low the current day buyers will know it and not make an offer. They are tired of playing that game and have decided to sit on the sidelines and do nothing. In the mean time the home sits on the market and becomes stale and unappealing to other buyers.
Below is a graph from October 27, 2016 directly from the local multiple listing service. The graph shows the LP:SP ratio, which show how much a buyers pays over the asking price of a home. 100% is full price. Over 100% is the percentage the buyer paid over the list price.. Note how back in March 2016 buyers were paying over 8.5% above asking price.
That’s a lot of extra money on the table. And, those days are gone. Sure they may return as well they may go further downwards. The point is today the trend is downward.
List Price : Sale Price Ratio 2016 YTD
Amazing the other 4 trends I usually comment on are staying the same with only slight movement in either direction. Come back next week for complete email for all trends.
What to do next?
In the mean time you know what you can do if you need more information or assistance. I am here to help. You can help too if you click the tweet button below for me. I know Tweeter my be gone before you know it. Funny how $86 profit causes you to lay off a big percentage of your work force. I feel so sorry for them. Boo Hoo.
[Tweet “Are you kidding me? No way will I pay that much money”]#I #money #way #markettrendsforrealestate #homebuyersarestartingtohaveachance #notabubblejustexpensivehomes #marketvalueisyourlistprice
SF Bay Homes
Email: cliff@sfbayhomes.com
URL: https://sfbayhomes.com/
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Ignorance is temporary, on the other hand, stupidity is permanent. Knowing the truth will save you money.