2007 was a record year for me.  2008 hasn’t even been close.  I didn’t expect things to be this slow but it’s simply the story of supply and demand.  There is so much inventory available that buyers are overwhelmed.  They want to see everything to be sure they’re not passing by on a property that might be perfect for them.  Some of them are returning to the perfect property only to find out it has been sold. 

For many buyers they have a handful of “perfect” properties to choose from and they must make a decision on which one is truly the best for them.  Bottom line is that there are many homes priced right that are still being bypassed because of the amount of homes available for sale.

Think about it this way; a buyer loves 3 homes.  They each have good floor plans and are priced correctly.  They are updated nicely or they’re simply the cream of the crop in their price range.  If it’s a couple purchasing maybe one likes one home and the other one likes another home better.  They have to sit down and discuss which of the homes fit best with their lifestyle and budget.  They will only buy one of these homes so the others simply become runner-ups.

I have some of these runner-ups.  One of my listings is beautiful and I’d buy it if I were looking.  But would I?  If I were out comparing it to other available homes in the price range would this be my first choice?  In fact, there is a feature which could be an amenity to some and a detriment to others.  It is still beautiful, is in an excellent location, has been reduced around $40,000 and still sits.  In fact, we had offers in the beginning but at the time the sellers would not accept such low offers and their buyers still had to sell their homes and they weren’t even on the market yet.  So there has been interest but the timing and buyer’s situations weren’t right.  Now we’re at the end of our better selling season and no offers are coming in even with price reductions.

I have a Tinley Park property for sale that is also priced under the CMA value that is also sitting.  It is getting showings and most of the feedback is positive and mention that the buyers are still considering it.  But no offers and we’re on our 2nd price reduction.  This home is on a big beautiful lot that will appeal to many but might turn off some people that don’t want the upkeep.  It is very well maintained but has some original fixtures and decor.  We have talked about the sellers redoing at least one of the dated items to see if the investment pays off.

I also have a gorgeous Tinley Park townhouse for sale that is spacious and shows wonderfully but it is located next to a commercial property and the last appointment was cancelled when the buyers arrived and didn’t even want to go in because they didn’t like the location.  These sellers have taken their first price reduction.

I have many more listings and I have sold a lot of them but as the market slows down further it’s going to be even more difficult to sell.  There is still too much inventory for a small group of buyers.

To prove this point, I gave a Comparative Market Analysis for a Berwyn home and the seller was very unhappy to see that she would not get what she needs to sell.  She will most likely reluctantly continue to rent it out and look for a new tenant.  As an example, in a $25,000 price range there were over 100 properties up for sale in Berwyn.  Do you think there are 100 buyers right now looking in that price range?  I don’t think so. 

Let’s say there are 25 buyers looking in that price range right now.  That means even if they each purchased a property this month (which will not happen because that’s not the rate of buyers purchasing in one month in Berwyn) there will still be 75 homes left!  Think about that fact.  That’s a lot of homes still sitting on the market and having 25 buyers purchasing in that price range in one month is fiction.  It isn’t happening.  The true figure is probably 5-10 buyers.  Which means 90-95 homes still remain on the market, and that’s only if no other homes get listed.

The example above should explain the crisis sellers are facing now.  And it really comes down to price.  Your home doesn’t need to be completely updated as long as it’s the best home in its price range.  Buyers will let the seller know if that’s the case by writing up an offer to purchase.  If you’ve been at a certain price with no offers then you need to consider reducing price at intervals until you do receive an offer.  Marketing can only do so much to get your property out there, you have to make sure it is priced correctly with the help of your agent.