If you think that low prices (from an historical standpoint) means it’s a Buyers market. Guess again. Those days are gone in many communities and neighborhoods … certainly here in the San Francisco Bay Area. We did see a very significant drop in prices and we continue to see a lot of short sales as a result of those drops. But along with those price drops came an equally significant increase in the affordability of the homes in the area. Thousands of families and individuals who thought they would never be able to afford anything now find they can … and they are out there in droves. Many families who never thought they could live in a top neighborhood now find they can … and they are out there in droves.
The bottom line for everyone in that position and the agents that are helping them through the process is Act Accordingly. Assume everyone wants the same house and put your best offer forward first. Prices, even over full price, is often still a bargain historically. Doing less than your best often means not getting the house at all.
Is there an exception to this rule. You bet. If the property has been on the market at the same price for more than 30 days it is probably over priced perhaps by 10%. But if the property just had a huge price drop and is now suddenly in your range, then you can bet it is in now in someone else’s range also… So Act Accordingly.