Do You Want a House, or a Deal?

Last week I gathered with a group of Realtors from different markets, and “Do you want a house or a deal?” became a common phrase. One lamented that he was writing a “starter offer” for a client — that is, he knew it wasn’t enough money to get the house, but he couldn’t convince his clients that they needed to come up in price if they were serious. Realtors often talk in terms of “They have to lose one or two…” meaning, a buyer needs to be out-competed and lose out on a house or two before they understand that their agent isn’t kidding when he or she describes what needs to happen to make an offer competitive.

There aren’t “deals” in the market right now. There might be fairly priced homes or investment opportunities, but there aren’t “deals.” There’s a lot of talk about interest rates and a belief that if they increase there will be fewer buyers. What’s being overlooked is there may also be fewer sellers. If you are locked into a 2.75% rate, you might think twice about selling your home if that means you’ll find yourself in a 4+% rate. Still, it’s important to realize these are still historic lows in the big picture.

This “House or Deal” mantra also works for sellers. We aren’t actually seeing a slowdown in the Walla Walla Valley market, but we are seeing sellers trying to push the market too far on price. The market is more efficient when both buyers and sellers listen to the reasoned advice of their Realtor regarding listing and offering prices.