When a market transitions, home prices become a moving target especially when as the market cools down. Now is the time to pay attention to pricing and market conditions when you’re planning to purchase. During the buying process, it’s important to remember neither agents nor sellers determine market value: Only the market itself – willing and able buyers – establishes value. And recent sales, typically the last 3 months of sales around the property, can help determine fair market value for the home you are interested in.
In 2021, overbids and properties that sold over asking were up and the buyer market was hot. Today, there are less properties on the market than last year, open house attendance is steady, yet houses are selling slower than last year. Today’s buyers have more time to focus on home condition, the quality of their purchase and realistic seller expectations.
How to determine if a listing is overpriced:
If a listing has inadvertently been overpriced (or market conditions suddenly cool), the sooner it is recognized as such and the price adjusted, the smaller the negative impact. Price reductions must be big enough to regain the attention of buyers and their agents –typically, at least 5%.
There are many more tips to determine your buying strategy and what determines a great buy. In the bay area, the difference in your purchasing strategy can add up to tens or even hundreds of thousands of dollars.