Real Estate Agencies

Many things changed as the real estate process morphed from a seller’s to buyer’s market over the last 3 years in Northern NJ. Now, at the start of 2011, buyers and sellers seem to have a somewhat better handle on what is expected of them and what they can expect from each other. But the struggle’s not over yet.

It’s been a difficult dance, with some steps still to be determined. Many listed homes, still overpriced, have not sold. In many communities in our area, 50 to 75 percent of MLS listings in 2010 failed to find buyers. Sellers face the dilemma of wanting to move on but without the financial rewards they always expected. Some will move forward anyway, to get where they want to go in life. Others will keep the house, the taxes, the upkeep — and defer the dreams to avoid capitulating to unpleasant market realities.

Meanwhile, buyers are reeling, as well, because the signposts for maneuvering in a “buyer’s market” are as murky as they come. Is it the bottom yet? Why shouldn’t that house that’s been on the market forever sell for 10 percent under the asking price? Will we lose money once we close? Can we contest our taxes based on old valuations? What are we getting ourselves into? Without all the facts, anxiety prevails; hence, the procession of “low-ball” offers that we Realtors® see every day.

And so, we sales professionals are quietly counseling buyers who really want to buy, to start negotiations in a “decent” place. Start too low the seller fumes at the get-go and closes up. Even if a deal emerges, the legacy of the original low offer may echo through attorney review and inspection in unfortunate ways. It’s difficult information to process. Many buyers have to go through it to get it.

Buyer: I like the house but in my gut I feel it’s overpriced. I need wiggle room with my opening offer. If I start higher, I lose my negotiating power.

Seller: You want our home? Then be nice, be fair. Otherwise, we’re not interested. We’re not giving it away.

Buyer wants a bargain. Seller wants respect. And since all real estate transactions depend upon compromise, without that spirit, there’s nowhere to go except to dance to another house.

Roberta Baldwin, a realtor since 1995, is a partner at Keller Williams NJ Metro Group, Montclair.