Think back to when the market was climbing, climbing, climbing. Every time a house in your neighborhood sold between 1997 and 2005, your internal cash register rang. “My house is now worth $220,000”. “My house is now worth $250,000.” Then higher, higher and higher. Your mind adjusted every single time a home like yours sold. One day a neighbor came by to let you know the home around the corner, not nearly as nice as yours, just sold for $300,000. Wow! Eventually, your home value reached about $360,000, by your estimation. Things were great. It was never going to stop.
Then something strange happened. People became overextended. They had to sell. They had no choice. Inventories of homes grew. The buyer pool yawned. Homes in your area began to sell for $350,000. Then $340,000. Then $330,000. But your cash regsiter in your head didn’t allow for this kind of thinking. It was still stuck at the old number. You began to say things like:
“That house does not have a pool”.
“Their carpet is not as nice as ours.”
“We have more landscaping than they do.”
So you’re stuck at $360,000. You are asking how this can happen to you, when you are finally ready to sell? It’s not fair. You’re not giving your house away. You will just wait it out. You don’t have to move, like those other people.
What is happening is the market is going through a healthy cleansing cycle. It is doing what it needs to do to be healthy for the long term. Prices, rates, and fear are bouncing off the real estate walls.
Hang in there. Be logical. Your house is your home, but it is a commodity. It is worth (right now) less than your asking price, and exactly what your best offer becomes.