There is a disconnect going on between buyers and sellers. We see this when a market is poised to change. I am cautious in saying this however, as last fall I was writing the same thing worried about what was to come and in the end the slowdown was a little bit of interest rates and a lot of a seasonal effect. Fourth quarter of 2022 there was a noticeable slowdown in volume, but as soon as the new year began, spring of 2023 was back to bidding wars and the real estate frenzy. Perhaps this is a pattern that we should come to expect.

The stress I am sensing at this moment is from sellers tied to a price that reflects the high flying sales they read about or saw in years past. The "make me move number" in their heads isn't always realistic and can result in a long and sometimes stale period on the market. If they won't negotiate they are turning away realistic offers and this can be frustrating. More motivated sellers are now reducing their prices in order to capture a sale before the holidays arrive. Buyers are more cautious and while willing to reward sellers with a significant profit from when they bought, no one wants to grossly overpay for a house- especially if they are financing at high rates and have to do updates to the property in the future. In order to move forward in these situations there has to be reflection by both sides in order to come to an agreement.

 

A careful and realistic analysis of the market is critical in pricing for these sellers. Examining past sales that are comparable, acknowledging improvements you made or didn't make and knowing the demand for your property helps form a pricing strategy. You need a skilled agent to do this! There is a property on the market now where the seller is asking 100% more than he bought it for about 10 years ago. During that period they didn't do any capital improvements. That kind of return just won't happen.

The Federal Reserve announced this week they will not raise rates at this time. This will keep the 30 year fixed rate close to 8%. Not ideal for most people, so mortgage brokers are on the sidelines trying to be creative in order to create more affordability for their clients. Here is the latest strategy they are using. In an offer the buyer asks the seller to give a credit that will in turn be used to pay for points to buy down a mortgage rate, thus helping them afford the house. It's a creative strategy detailed below!

Happening Events Coming Up

 

Fall means fun- here are some local events to keep an eye out for!

The 34th Spelling Bee is Almost Here!

November 8th 2023

7pm at WHS

Come support me and MGS Group at the Wellesley Spelling Bee!! All funds raised through the Spelling Bee are for the Wellesley Education Foundation and go directly to support programs that advance innovation and excellence in the Wellesley Public Schools.

Marie Schiller, a longtime Wellesley resident, is hosting a reception at Lockheart restaurant on November 13th from 6-8 pm to build awareness and support for young adults living with diabetes. Marie serves on the Board of Directors for a non-profit, The Diabetes Link., whose mission is to ensure all young adults with diabetes are empowered to thrive through this typically challenging period of life. The organization is pushing to expand its reach so they can help the hundreds of thousands of young adults who could benefit from its resources. If you are interested in attending, please RSVP to Marie Schiller at marie@thediabeteslink.org.

 

Discover the Magic: Wellesley's Enchanting Holiday Market Place with 200+ Unique Vendors 

I am a proud sponsor once again! Join me in supporting the festive sprit at the Wellesley Marketplace - where community and holiday cheer come together. 

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I'm always available and more than happy to provide an analysis for you! Email me at teri@mgsgrouprealestate.com or call at 617-306-3642 to schedule a meeting.
 
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