Buyers are fed up! They have buyer fatigue and buyers remorse. Two things that are starting to shift the real estate market.
What does that mean to you as a buyer and what can you do about it as a seller?
In the June 2021 market report, which you can see right here, I mentioned that there is some good news for Buyers in this real estate market.
However, the number of houses for sale is still woefully low, especially now that school has started again and the fast and furious summer selling season is at its end.
Make no mistake, it is still a sellers market.
However, between buyer fatigue and buyer’s remorse, selling your house for way over list price is not as easy as it seems. The days of putting your house on the market and expecting a ton of offers are gone. Unless… no, we’ll talk about that later.
Buyer fatigue sets in when buyers have put in offer upon offer, getting outbid every time. At some point they can’t get excited about yet another house that they probably won’t get. At that point they say forget it. Actually, they use stronger words than that, but the end result is the same. They drop out of the market. Maybe they’ll rent for another year or they just stop looking.
That is a risky business though, because home prices will continue to go up (although not as fast) and interest rates are not going to stay this low forever. If you wait too long, first time home buyers could get priced out of the market.
Buyers’ remorse comes when you have been looking and you are NOT going to lose this house. You offer more than you were planning. Congrats! You have the house! And then reality sets in. Because not only do you have to get a mortgage, you also have to upkeep your house.
So when that inspection report comes in with the looong list that it usually contains, buyers bow out. Even when that house ticks all the boxes, is in good shape, but may need some cosmetic changes. Add in the appraisal gap guarantee and buyers remorse sets in.
Buyers terminate the contract and the house goes back on the market.
That is the dirty little secret that nobody tells you… Houses go back on the market and have to be sold again and sometimes again.
I recently heard a stat that something like 40% of transactions terminate. I don’t know how accurate that is or where it came from, but even if it is half that, that is huge.
So how can you take advantage of this as a buyer?
Make a Back Up Offer
If you love the house, made a good offer, but you didn’t get it, make a back up offer. If the other buyers terminate because of buyers remorse, you can snap up the house. And many times, you can have much more favorable terms.
Target Homes That Have Been On The Market
Look at houses that have been on the market a while, even the ones that are a little over your budget. You may be able to negotiate a better deal.
Maybe they just had a price reduction and are now within your budget, or maybe they are getting ready to reduce the price if it’s been sitting a while. These are opportunities and great ways to overcome buyer fatigue and buyers remorse for weary buyers!
Avoid Buyers’ Remorse As A Seller
List your house in MOVE IN READY condition.
Gone are the days where 10 buyers are ready to go highest and best and go thousands over list price on a house that needs carpet, paint and other updates. Especially if that also requires an appraisal gap guarantee.
Be sure that your house is ready for prime time when you list it. Only then will it fetch multiple offers. And honestly, bidding wars only happen when you price it right. If you don’t, expect your house to sit on the market.
If you are looking to get top dollar for your house, check out the Georgia Online Offer Platform.
If you are looking for a REALTOR® to buy or sell a home here South of Atlanta, reach out to me at 404-314-6638. I’d love to help you.