My take on the market this week in our area is the same as it has been for awhile now. We haven't seen a serious dip in demand and our inventory remains drastically low. One point--which has been clear throughout all of this--is that even in the frenzy to find a house, buyers won't overpay out of the gate. A number of properties came on in Wellesley that seemed priced too high, and in turn didn't sell. The overpaying seems to come when:
- A reasonable to low price is put out there for the desired property
- Buyers’ emotions run high in the bidding process, which ultimately pushes buyers to pay more
If a sellers' price is too high to begin with, they should not expect a bidding war. Even in these times, people want to feel like they are getting a decent value and if they pay too much, they'll take ownership of that decision. There’s definitely a psychological element to this, which is what makes it all the more interesting.