Are home buyers being Greedy in today’s market?

What ever happened to buying something for what it’s actually worth?  If you have something for sale and you know what its worth, will you let it go for a lot less than market value? For example, your home is worth $300,000. A buyer offers you $250,000 for your home. You say to yourself, you have got to be kidding me! Does this buyer actually think I will sell my house for $50,000 less than market value?

Well this seems to be the case now in today’s housing market. For some reason buyers are going around and offering ridiculous offers on homes. Reverse the roles and it’s a different story. They would more than likely be out raged….

The media and internet advertise that we are in a buyers market. Basically that means there are more homes for sale than there are buyers. This typically drives down the price of homes a bit to sell, but it does not warrant a seller to lower their sales price by $20,000 to $50,000 under market value.

In some cases when a bank accepts and offer for a home under market value this affects values in the area. The value of a home is dictated by homes sales over the last 6 months in a particular area. When that area has a high number of foreclosures, the values typically fall. This takes place due to buyers making low ball offers on foreclosed homes. Banks have the tendency to accept low offers when there is not a bidding war to drive up the offer price. A bank will dump a home to get it off their books.

This type of scenario affects the value of homes. Maybe you got a good deal on the home you bought, but the current homeowners just got their values lowed because of your good deal.

We all want the best deal possible. But sometimes greed will cause issues. I believe low rates and good deals on homes bring out the worst in people.

In the long run this type of market affects all of us in a negative way.

Maybe we all should consider “Practicing the Golden Rule.”

Author: Mike Clover

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