We are moving to an area where home prices are falling and there is lots of inventory (in the South). I suspect RTO policies have something to do with this, as this was a popular place for rich Northern people to move during covid WFH days, and there were lots of new developments built over the last few years - so a lethal combination of high inventory and people being forced to leave the area for jobs has softened home prices.
That being said, we are finding that many sellers don't want to budge much on price, even if their homes have been sitting on the market for a while (for months, or even a year in some cases). We have made 2 offers so far (one at 15% below current list price and the other at 25% below), and the sellers each countered by lowering their prices only slightly (3% and 5%), so we moved on. One home has been on the market 317 days, and the other 97 days. Both have taken 2 price cuts so far from original list price.
We came up with our offer prices via a fairly thorough comps analysis, looking at recently sold properties and ones that haven't sold and have sat on the market. I feel like we considered all relevant variables (sqft, # of bathrooms and bedrooms, acreage, location, quality of upgrades, age of the house, etc).
Should we just continue on until we find a seller who's willing to sell for what we think is the right price? Or do you eventually have to just pay more than we think a house is worth to get a deal done?
The other frustrating aspect is our agent keeps insisting to us that the market is strong (despite all the logical data saying otherwise! and that we should be offering close to list price. When we look at recently sold homes, there are literally zero homes that go for list price.
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source https://www.reddit.com/r/RealEstate/comments/1k6ml0y/lots_of_inventory_falling_prices_but_not_getting/
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