Does high inventory and low sales of Vancouver real estate mean buyers and sellers are stubborn?
Value Difference of Opinion
Continuing to state the obvious we know that the current level of homes for sale in Vancouver suggests that many sellers want to sell – or do they? In all likely hood there are many buyers who want to buy or – do they? With market prices lower but not exhibiting an overt decline are we to presume that they will only sell and only buy if they ‘get their price’. It seems fair conjecture.
A recent coffee shop story from a Vancouver Realtor® pal claimed that a sale on a east side $950,000 home never concluded when the buyer and seller would not agree on a $2500.00 difference of value opinion.
Worthy of calculation, the $2500.00 equates to a 0.26% difference of dollar opinion which in this case was big enough to kill the deal. If you are scratching your head wondering why then there is perhaps a reason within that tells us there is more to this market than we might suspect – a reason I believe that won’t be accountable in market fundamentals.
A sentence in an email from a buyer helped clarify this 0.26% conundrum. Stated was:
“We ARE serious to buy, but on our own terms.”
Hearing such words voiced adds dynamic to this current Vancouver market. It may be one which at glance appears to have both sellers and buyers feet set in quickly drying concrete of differing opinion. The email confirmed buying philosophy of ‘on our terms’, may be more in control that we might have suspected. If sellers are maintaining an equivalent outlook we might well expect this market malaise to continue for some time. Assuming all things remain stable, then maybe it will take an event such as a mortgage rate increase to break the intransigence.
We Realtor® types sometimes think we know it all when it comes to negotiating the purchase and sale of Vancouver property. In reality it appears that confidence is at odds with a 0.26% chance that we are wrong.
What confidence remains is one that is certain. While it may be a fine game to play hard ball, the game itself is a waste of effort if in advance your philosophically precludes you from ever winning. With only a 0.26% margin between winning and losing, I suspect that in this case stubborn mule talk convincingly turned both the seller and the buyer into losers.