Hi Prospects & Friends!
The currently economy is not really being friendly to sellers or buyers, since sellers are having to deal with discounted neighbor comps, while buyers are dealing with higher interest rates. Many of you are thinking what are discounted neighbor comps? Here is an example "Samantha listed her home for $85,000, and it sat on market for only 10 days and then she decides to drop it to $75,000. The property finally closes and sales for $55,000. Their was nothing wrong with the property, and the reason why Samantha accepted the $55,000, was because she was in an hurry to sell, and didn't really care about the price drop since she originally paid $19,000 for the property years ago. Next Sam her neighbor was going to list his exact same property like Samantha's for $95,000, but because it was a recent comp next to him he knows it will be used against him when comes times for negotiations. So Sam decides to not list his property, because of this issue and cant take a huge price cut like Samantha did, Sam wants close to her original list price she listed for which was the $85,000. Sam knows their are other comps similar to his that sold for $85,000-$95,000, but he just doesn't want the hassles of Samantha's comp being used against him since it's indeed his neighbor with exact same property layout. So conclusion is our current market is causing all kinds of sellers and potential buyers to create deals that aren't appealing to their peers/neighbors who want to buy/sell and just causing them to "wait it out" till another neighbor lists at a better market price that sells at full market.
