Buyer Expectations Unrealistic?
By Jim Palmer Jr.

After several years of a seller’s market where sellers had most of the leverage, we seem to have entered a real estate market where buyers think they may have gained the upper hand.  I say it like that because many buyers act as though there is lots of inventory and as if buyers have all the power.  The truth is neither sellers nor buyers have the advantage in current market conditions.  It seems to be a more balanced market than we have seen for many years.

It is a common practice for buyers to perform a professional inspection of a property at point of purchase.  As a result of those inspections, there are many buyers out there who want to dictate to sellers an exhaustive list of repairs for the seller to address before they will agree to close the sale.  But because of the balance of power in the market, sellers are pushing back.
What I find fundamentally flawed with that type of thinking from a buyers perspective is that usually they are buying a used product, much like a used car purchase, and yet they expect it to be in tip top, like-new condition.  If it was a used car, you may want the brakes and the motor to run, but you expect some dings and dents and probably some wear and tear or a lack of new gadgets or amenities that a newer product might have.  Properties are usually priced according to their general condition, taking into account the age, amenities (or lack thereof) and location. 

When a broker does a market analysis, all of those criteria play a role in the valuation process.  Of course there are overpriced listings out there but that’s not the topic of this discussion.  Until buyers gain the upper hand in the market (which doesn’t look like that will happen anytime soon), buyers may have to adjust their expectations or may just go without. 

In a recent example a buyer turned down the opportunity to offer on a property they really liked, just because there wasn’t a built-in microwave and there were some other upgrades that they wanted in order to make the property more suitable to their tastes.  In another example the home was somewhat dated, and buyer after buyer refrained from offering just because they’d have to invest in upgrades to make it “like new”.   Are these buyer’s expectations unrealistic?  Probably, but their pushback on sellers might be what will keep prices subdued in the future market.