is a uniquely strong market and, in my opinion, serious buyers make
a big mistake if they think otherwise. I repeat this statement often
enough hopefully not to qualify for ad nauseum. Situations
in which properties sell at bargain basement prices do exist but very
rarely in neighborhoods with higher priced homes.
it is always, ultimately, the market that prices a home. Not a hopeful
buyer or seller. So the bottom line is knowledge based on experiences
sometimes quite challenging for both my buyers and me that both
buyers and sellers who try to outwit the DC market are most likely going
to lose in the end.
real estate markets in this country are, in my opinion, as close as
one gets to "perfect" and free, a la the Chicago
School of Economics. According to the venerable Chicago School, a free
market has no regulation and a perfect market has
perfect information. Our markets are regulated but in relation
to procedures, not price, which is decided entirely by competition.
Our regional multiple listing service, MRIS, provides very close to
perfect information, providing the entire market with almost
instantly updated information on every transaction. So the market functions
with its own magnificently fluid reality.
of the few ways a purchaser can truly get the better of a seller is
if the seller does NOT attempt to find out what the market price is
i.e. if the seller is allowing the property to remain at a price
that is clearly too high. He doesn't know what the right price is but
wants/needs to sell. So when you bring him a low offer that's all the
info he has. Your one offer becomes his only indication and hence becomes
could find the overall "market" almost immediately by dropping
the property's price into the aggressive range. Thousands
of Realtors see all the properties listed and when a price looks like
it's well-priced, at or below market they - frequently many - encourage
their clients to jump on it.
notes here re short sales: First: it is my opinion that, probably because
of the laboriousness and uncertainty of the process, a short
sale is the one consistent way to buy property at a bargain price.
And a pertinent second: at least in our area, the latest technique used
by agents to generate a quick contract for a short sale is to drop the
price far below the market. Within 48 hours ten, twenty, even thirty
offers invariably manifest and run the sales price up though,
interestingly, still significantly lower than the property would command
if not a short sale.
often in the form of a bidding war, will tell the seller exactly what
market price for the property is - an excellent argument, by the way,
for dropping a propertys price rather than letting it sit on the
is true whether the seller bought low or not
why I try to educate sometimes recalcitrant buyers to the fact that
tax records are not often relevant. Keep in mind that during the heinous
era of subprime, the seller could have refinanced every bit of equity
out of the home. Also, I'm sure if you were a seller who was smart or
lucky enough to buy when the market was lower you would think you deserved
to benefit from that decision. Right?
All sellers can have the reasonable expectation of getting a true market
price for their property. But the flip side is that all buyers have
the same expectation.