Buyers Waiting, Sellers Waiting, Banks Waiting in 2009

Where are we going in real estate? I have a number of buyers and sellers who see things so different. And of course, each and everyone of them have their own justifications.

For instance, the sellers wholeheatedly believe the market is going to spike this Spring and prices will remain stable (God Bless them). So they are optimistic and believe we need to be patient, stay the track and talk up the good talk, so to speak.

Here is what has been happening: Sellers will withhold listings from the market or cancel listings that don't sell within 90 days. If they are smart, they will adjust their listing prices and have a good agent that can persuade them.

Still others will: 1. Ask themselves if they are better off selling their homes on a short sale, absorbing the hit to their credit reports and becoming renters for a few years. Many sellers will turn to a short sale or walk away than try to directly deal with mortgage lenders. 2. Sellers who are unwilling to take a hit on their sales prices will put their homes on the market as rentals


What concerns me is the hard data, the unemployment rate reflecting the recession of the 1980's and the bank trouble reflecting the depression of the 1930's. Going alittle big closer to home, our sold stats for Queen Anne's County are down almost by half. Our inventory right now is climbing, the closer we get to the warm weather(which I cannot wait for) the residential properties on the market for sale or rent hover around 700 plus.

And we have some 300 real estate agents who are registered with the Bay Area Association of Realtors and if you ask any of them (agents) they will tell you it is crazy market. Yes, I know we are supposed to say, "Everything is great and Unbelieveable," to avoid the downtrodden and rotten news about the market. That notion of accentuating the positive does work, but what happens when reality sits in?

Please do not get me wrong: I think this is a fantastic market and there are some really killer deals out there. But we are dealing with sellers who don't want to be realistic on setting their selling prices, buyers who think the market is a free for all and writing ridiculous low ball offers.

Then, you have the banks who say they want to sell their homes but, still don't want to budge on the listing prices and think they can get 90 cents on the dollar. You can't help but, ask yourself, "Do the banks really want to sell and do they understand what is going on in the market?" You would think the banks would jump at a reasonable offer and avoid the frog leaping, loop-jumping scenarios.

Okay buyers, yes it is a wonderful time, on the bright side, employed home buyers with good credit will find 2009 is an excellent time to buy. And of course, cash buyers will win every time over buyers who need financing.

Please do your homework and realize most properties have already been adjusted for the 20% reduction over the last year, the experts claim. Of course, it's a buyer's market and many think the prices are going to continue to drop, so they wait, and wait and wait some more.

Well, Mr. "Waiting" Buyer you can just wait, and hope that property does not get snatched up or you may be doomed watching the interest rate go up. And guess what? Not only may the price drop on the home, but if the interest rate goes up you will be paying more for that home. You see, if you would buy now while the interest rates are so low, you will save so much more instead of waiting for the listing price to drop. So don't wait, you're in control. Write your offer contingent upon the property appraising at the agreed upon sales price and on obtaining your loan.

Call me at 443-786-0200, I would be happy to sit down with you and crunch the numbers.