We have a problem with sellers thinking their house is worth what their neighbor got last year. They do not understand the market shifted, and are digging in their heels. In the end, they are only hurting themselves, as they chase the market down.
Think abou this factoid: A few years ago, we had 1 buyer for every home. Now, we have one buyer for every 8 homes.
If I knew I had to compete against 7 other people, because the buyer will choose only 1 of us, I wouldn’t price my home too high. But realtors talk until they are blue in the face, and seller greed and ego are stronger than logic. The same factors that created the bubble: greed, ignorance, lack of rational thinking, are causing the long days on market.
If all homes were market priced, would our sales be at last year’s levels? Maybe.
