How Can You Buy What You Cannot See – You Can’t!

Here we are approaching what some believe is the end of the recession, at least as far as real estate is concerned. Although prices are forecasted to remain flat this year, and in some areas they may even drop another 5-7%, sales volume is predicted to increase by between 7-8% in 2011 after falling almost 5% in 2010. Buyers have been ready and anxious, yes anxious to buy for several years now, but they don’t want to pay too much and if there is any chance of the market going down more, they’ll wait; what’s another year going to matter. Exactly! What is another year going to matter and what is another 5% going to matter over the next 10 or 20 years? If you find the house you love, then now is the time to buy.

Of course you’ve been hearing that from real estate licensees for the past few years. Now is the time to buy. Okay, let’s assume that now is the time to buy. But how can you buy what they cannot see?

I have been trying to figure out how many properties have been removed from the market in the last three months, but our database system makes it very difficult to separate Off-Market from other status types. I think I was able to get enough information to conclude that there are between 100 and 200 properties on a winter hiatus, most likely to be relisted in the spring. It makes me wonder if sellers are really motivated or serious about selling.

Historically, the assumption is that winter is a slower selling season – ‘the off-season’. This recession has created another kind of historic market. There are legions of buyers out there ready and willing to buy. So the real reason this is a slower selling season is because there are less properties on the market.

In the Martha’s Vineyard real estate market, buyers are looking right now for properties they can own and enjoy during the summer season. They want to find it, buy it and get it ready making it their own in time for those precious few family vacation months. They have cash in hand or are approved for a loan at what are still very attractive interest rates – although they are starting to inch up.

Buyers are ready to buy, but they can’t buy what they can’t see. If they don’t see a property they have been watching they may assume it has already sold and they will move on to one of the properties currently available or just wait until the spring-summer selling season when there will be more competition on both sides. Based upon the idea of supply and demand, it is a fact that sellers may actually realize a better selling price in a market where the inventory is low and where there are fewer properties similar to theirs in style, location and price.

My advice to sellers is not to worry that your gardens aren’t in bloom or your lawn furniture is in the living room. Buyers are not going to pay a premium for a few bushes or pretty plants. Actually, overly landscaped properties may turn off some buyers because that means more maintenance costs for an absentee owner. Buyers can see past the umbrella in the living room. Matter of fact, most houses are more cluttered inside during the summer season than they are now, and they are more difficult to show, especially if they are rented. So sellers, stop playing the listing shuffle and get back into the game. Listen to your seller agent and do your part to make your property saleable. I am an exclusive buyer agent and I cannot help you if you do not help me.