If financing is hard to get and the houseing market is at a standstill...?

Question

Wouldn't it make sense to assume that housing prices should fall soon? In our area, the housing market has been at a standstill for nearly 3 months, yet no one has lowered their prices on houses.

Is it possible to "persuade" someone to take a more realistic offer on their property? We like a house with an unrealistic price tag for what it would have been even BEFORE the "mortgage crisis"...how can we convince them that our offer is realistic so that we can get the house before it decays further?

Answer 1

Unfortunately, I don't think there is much you can do except wait.  It's my perception that the more you try to beat sellers over the head with reality, the more they dig in their heels and scream, "I'm not giving this place away!"  There are lots of people caught in this log jam.  I just postponed my own purchase until next year and signed a 1 year lease.  My new landlord just took the for sale sign down as he refused to lower his price anymore and preferred to wait it out while he rents to me.  So patience and good luck to you.

Answer 2

Your options of convincing the sellers are limited to your ability to show them that other similar properties have sold for less.  YOUR personal concept of what is 'reasonable' is useless.  If other similar properties are going (as example) for $250K and you are offering $190K, YOU are the ones who do not understand the market.

Answer 3

Your buyer’s agent can go into the local MLS and create a report of what comparable homes to the one you want have sold for recently (within the last three months) and then you can submit that with your offer as evidence of why you’re offering what you are.  

If someone has an inflated idea of the value of their home (“I KNOW it’s worth X” or “I can’t afford to sell for less than X” etc.), nothing but time and some serious pride swallowing will convince them otherwise – just ask any listing agent.