Lately there is a little trend happening. First as you probably know interest rates have been creeping up. Yes, they came back down a little, but I still can't find a 30 year fixed with a 3.25% APR and APY. I have seen some fixed loans at 3.625% APR with up to 7.25% APY!
The other thing that is slowing the market that is clear, at least along the beach, is that the seller/buyer mix has changed radically. The high end remodeled homes are now listing at very high prices. Agents are taking the listings and letting the sign sit, if nothing else for advertising. Not something I do or suggest in my office but it happens.
The Question Of The Day - So are the sellers of the nicer homes serious or are they testing?
More than one seller that I talked to have given me the "Well the market is hot so I thought I would give it a try"speech. A couple others said they need to sell, but don't need the money. Don't ask me how that works, because it makes no sense at all. Either you need to sell at any price or want to sell for a specific price. All of these people are clearly testing.
There is still a little middle ground left though. I have seen a few homes that were close to bull dozer ready sell for slightly higher prices, and the buyers did a minor or middle remodel and moved in. When I talk to them they said things like "I wanted in the area, but couldn't afford to do it any other way." This I understand since it is how I bought several homes in areas that were above my income. This is part of the slow and quiet way to make real money in real estate.
Buying a home is a little like poker, if the seller thinks that you can make money without bull dozing it, they might change their mind and try it themselves. Twice I have opened my mouth just a little too much and the sellers have tried to back out at the last minute.
Wit a little practice and thought, seconds after you walk into a home, you will know pretty quickly if the seller is serious or not. In some cases the agent might be invested and be trying to hold the price up. In other cases an investor might have "clouded" the title thinking they could get a better price. Either way, with a little practice you'll know the difference between a seller and a tester the minute you walk in the front door.
Oh yeah, I am working on an ap for that.....
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