Don’t Let the “Noise” Get You: Why Sellers Are Holding Tight (and Buyers Are Winning)
Welcome back to the Welcome Home Radio podcast! This week, we wrapped up our “Your Turn to Ask” segment by tackling the big question facing sellers: Are they adjusting prices to meet lower demand, or are they simply “waiting out the noise”?
The answer reveals a fascinating dynamic in today’s housing market.
Understanding the “Noise”
What exactly is the “noise” sellers are waiting out?
According to our panel, the “noise” is the overwhelming confusion and speculation flooding the market—from talk of potential rate drops and government shutdowns to debates over perfect timing.
Many sellers believe that if they just ignore the current headlines and market shifts, the perfect buyer at their preferred price will eventually appear. As one of our hosts put it, sellers are acting like they’ve got “diamond homes in a gold market—confident, sparkly, and only slightly in denial.”
The “Diamond Home” Dilemma
The confidence of many sellers stems from the recent past. Speaker 4 reminded us of the frenzied market just a few years ago:
“If people will remember three years ago, they overpaid by $50, maybe $75 [thousand] over listing price… That money they sunk into it, they’re they’re if they just listen to the noise and drop their prices, they’re gonna be losing out… So I think that’s why they’re willing to wait out the noise.”
These sellers are trying to protect the equity they gained (or paid extra for) during the bidding war peak. However, that thinking relies on old data.
The reality is simple: if real estate data is over six months old, it’s irrelevant.
The Current Power Balance: A Buyer’s Market
While some sellers cling to 2021/2022 prices, the reality on the ground is that the power dynamic has shifted:
“On the most part, buyers are in the position. It’s a buyer’s market. Everybody wants them, so sellers are gonna have to do something different.”
To succeed, sellers must accept that the market has changed. Waiting out the “noise” often results in lost time and, ultimately, much larger price drops.
- The Cost of Denial: A powerful anecdote was shared about a neighbor who had to drop their price by $170,000 just to sell a home that wasn’t “move-in ready.”
- “As-Is” is Not a Solution: Selling a home “as-is” without a significant price cut is rarely a viable strategy in a buyer’s market.
Don’t Wait for 3%—The Time to Deal is Now
We closed our discussion by reiterating a key piece of advice: Do not wait for 3% interest rates.
The best we may ever see again is in the high 4s. The savvy approach for a buyer is to capitalize on the current leverage they have:
- Negotiate, Negotiate, Negotiate: Use your position to negotiate closing cost credits, or even a 2-1 or 3-2-1 buydown to make your initial payments much more manageable.
- Focus on the Deal: The current climate is perfect for finding motivated sellers and excellent deals—if you’re willing to step into the market now.
Thank you for tuning into the Welcome Home Radio podcast! We hope we’re answering your questions out there. If you know a veteran, please take a moment this week to thank them for their service.
Happy Thanksgiving to everyone coming up shortly!
Welcome Home Radio production provided by Lunatic Digital. Visit welcomehomeradio.net for more information.
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