The Real Difference Between Buyers and Sellers

By
Real Estate Agent with Real Estate West BRE# 701315
http://actvra.in/rhZ

 

 

 Buyers and sellers have always been at opposite ends of the table.  When the market is moving upward sellers want multiple offers and push buyers for every extra dollar they can get.  When the market starts trending downward buyers will withhold offers until they feel they can negotiate a price that is at or below market value.  Revenge can be sweet!  However a recent survey may hold some clues about the  difference between those who own a home and potential homeowners.

In a recent  Survery by the Pew Research Center. Homeowners were surveyed about where they believe home values are headed.  Of  those surveyed 55% of sellers believe the value of their homes will increase modestly over the next few years, 10 % believe it will decline  and 26% believe their home's value will increase substantially.  I guess the other 9% have no idea what's happening.  But it is interesting to note that even with the current declines in prices in the US housing market over 80% of sellers are upbeat about home values. 

Buyers, on the other hand, may be mirroring similar numbers but with different results.  That is most believe  or perhaps hope prices will decline a lot over the new few years, some think prices will only decline slightly and a few believe prices will continue to increase. And again 9% have no clue.

What this may point out is the real dichotomy between those who own homes and those who don't is how these people view the future of housing.  People who own are far more optimistic that their homes will increase in value even if not at the phenomenal rates of the last few years.  People who don't currently own a home seem more pessimistic about ownership in general and values in particular.  It may be that some potential buyers just aren't willing to take on the committment of homeownership unless there is a big profit at the end. For these people homes are more then shelter they are their financial future. Or it just may reflect a difference on how these groups view life.  Some will always see the glass as half full and others see it as half empty.

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Rainmaker
617,627
Randy Prothero
Hawaii REALTOR, (808) 384-5645
Island Style Realty Inc.

Kaye - Great topic of conversation.  Buyers and sellers do have one thing in common.  They both want the home to sell.  We get the big bucks to bring them together.

December 10, 2006 12:40 AM
Anonymous #15
Anonymous
Mikey

If you look at Economics 101, the price of something is what a buyer is willing to pay.

If buyers and sellers are still out of whack this suggests there will still be a period of lower home sales until this fundamental imbalance is cured.

December 10, 2006 04:52 AM
Rainmaker
198,339
William Collins
Director of Property Management
ERA Queen City Realty
Kaye, Thanks for the post. Buyers are more savvy today and I agree, it is not just about a roof over their heads. It is also about building wealth for themselves and their families. The paradigm you laid out with regard to this market is nothing new and as is the natural order of things, it will correct itself. As Kristal Kraft has pointed out in REALTOR...It's NOT about you!, stay focused on the Consumer Centric Model and you will ride the curve.
December 10, 2006 08:20 AM
Rainer
44,805
Michael S. Mackey
REALTOR ABR, CRS, GRI, RSPS
CENTURY 21 All Islands
Greta post! If buyers and sellers had crystal balls, would the seller's make the same predictions as the buyer's? Kaushik's comment sums it up nicely.
December 10, 2006 12:33 PM
Rainmaker
134,999
Kaye Thomas
e-PRO, Manhattan Beach CA
Real Estate West

Everyone: Thank you for taking the time to comment..it is intersting to note that much of what we see in our local markets  in the responses of buyers and sellers is reflected in  markets nationwide...I think we are seeing an evolution in the concept of homeownership...

.Allison Stewart points out.. expectations in appreciation may have been permanently changed by the run up in prices in the last few years.. And as Randy Prothro shared everyone wants to get the big bucks when a home sells.  I believ Joey Aszterbaum states.. your point of view definitely changes depending on the hat you are wearing.  Leigh Brown and others are wishing for a return of a balanced market but I wonder if we will actually see that again ... people have lost the concept of a normal market where you buy a place to live and stay there for a period of time before  moving to the next home.  As the Harper Team ponts out a good deal is often subject to 20/20 hindsite

 

Again thanks to all for your views and insight..

December 10, 2006 02:32 PM
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Rainmaker
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Kaye Thomas

e-PRO, Manhattan Beach CA
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My thoughts on everything from Real Estate in the South Bay beach cities of Manhattan Beach, Hermosa Beach, Redondo Beach and El Segundo California to anything else that strikes my fancy. Clicky Web Analytics

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