There is the edge of the chasm and there's the abyss.....
the candid thoughts of buyer and seller in Today's New World of Real Estate:
Potential Buyer: Every home I see just isn't quite right and the prices continue to drop. Why should I make an offer now?
Seller: My home was appraised above where I'm currently priced. Why would I reduce it any further?
Potential Buyer: This home has been for sale for 10 months. Why wouldn't I offer 80%of the list price?
Seller: I know what the home down the street sold for this past Spring and our property has more amenities and a better lot.
Potential Buyer: The interest rates went up to 6.75% today. We have to offer less so that we can get in without strangling ourselves.
Seller: What do 233 foreclosures in my zip code have to do with my value?
Potential Buyer: If the market is that bad maybe we should wait until 2009 to buy when we're sure we're at the bottom.
Seller: If I don't have any showings, why should I reduce my price?
Potential Buyer: What do you mean I now must have 10% down payment instead of 3%?
Seller: We may have to end up asking Wachovia for a short sale to get rid of it.
Potential Buyer AND Seller: Let's just wait until the market changes.
Mortgage rates rose above 6.7% Tuesday for the first time in 5 years. The price of Oil is coming down and that's good but inflation has become the boogey man as Oil takes a breather in the grand economic scheme.
Food for thought: In late 2004 through mid 2005 mortgage rates hovered from 4.8% to the low 5% range. How many people are going to be willing to take on 1.5 times in mortgage amount (what it would probably take to encourage someone to 'move up') and go from a 4.8% interest rate to a 6.75% rate? That's why this whole mess is going to take some time to clear itself up....
Questions? Comments? Donations? Greg@GregCooper.com or 317.848.GREG