There are a lot of indicators out there that values may have hit bottom and we may be seeing a bit of a bump in some markets. Especially in the lower priced homes, we've seen a tremendous number of properties that received multiple offers and sold for more than list price. This should allow for list prices on these properties to bump up a bit.
No generalities can be made about the market as a whole. That's one big reason I tend to give no weight to national sales numbers. Each segment of the market has it's own unique factors that influence values. It's all supply and demand. If you're looking to buy your first home in Traverse City because you can take advantage of the first time home buyer tax credit, you may be better served to offer list price or even higher in order to ensure you are able to get the property you've identified as "the one" because many of these homes are seeing multiple offers within days of the property hitting the market. 
In other market segments we're still seeing a large discrepancy between true marke
t value and the list price of properties. Grand Traverse County's Silver Lake is an example of this. With more than 40 available properties in 2009 and only a couple sales, it's apparent that the listed prices on most of the homes is not in line with what the market will bear. Some sellers have recognized this and have made substantial price reductions. This property (click image for details) right on Silver Lake, for example, was listed for $379,900, but was reduced late this fall to $299,900 which is a more accurate reflection of actual sales prices in the area. We saw an immediate jump in interest in this property and hope to have a buyer soon. I would expect to see more sellers bring their list prices in line with market value as we move forward. Once this happens, more buyers will jump into the market and should drive values up again.
t value and the list price of properties. Grand Traverse County's Silver Lake is an example of this. With more than 40 available properties in 2009 and only a couple sales, it's apparent that the listed prices on most of the homes is not in line with what the market will bear. Some sellers have recognized this and have made substantial price reductions. This property (click image for details) right on Silver Lake, for example, was listed for $379,900, but was reduced late this fall to $299,900 which is a more accurate reflection of actual sales prices in the area. We saw an immediate jump in interest in this property and hope to have a buyer soon. I would expect to see more sellers bring their list prices in line with market value as we move forward. Once this happens, more buyers will jump into the market and should drive values up again.No generalities can be made about the market as a whole. That's one big reason I tend to give no weight to national sales numbers. Each segment of the market has it's own unique factors that influence values. It's all supply and demand. If you're looking to buy your first home in Traverse City because you can take advantage of the first time home buyer tax credit, you may be better served to offer list price or even higher in order to ensure you are able to get the property you've identified as "the one" because many of these homes are seeing multiple offers within days of the property hitting the market.
This terrific log home (click image for details) on The AuSable River's North Branch, for example, was listed by our agent, Mark Bear, for only 12 days and already has an accepted offer for very close to list price. I'm sure there are a number of buyers who saw this one hit the market and decided they'd look at it after the holidays. Unfortunately it's already gone!
If, however, you've been watching a market that has seen very few sales which would indicate a glut of listings and list prices probably a bit above market value, it may be time to really work on negotiating a more favorable sales price. Too many people are out there right now watching a property or two that would be ideal, but the price seems too high. They're waiting and watching for the list price to be reduced before making a move. My advice is to go a head and make an offer. You never know what the seller's mindset might be. You may be able to negotiate a very attractive price that works for your budget regardless of the list price. The risk of waiting for a list price reduction may mean another buyer more willing to write a lower offer will snatch up the property that otherwise may have been a great fit! There's no way to be able to tell what amount a seller will be wiling to take without putting pen to a purchase agreement and trying to negotiate.
One of the great advantages to working with a solid Realtor is that we have access to detailed sales information and an in depth understanding of the markets we service. We'd love the opportunity to help with your next purchase. Please contact us at your convenience to learn more about how we may be able to help ensure you end up with your dream property at a price and terms that work for you!
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