Just had a proposed deal founder over a 7% difference between what my buyers’ mortgage lender had approved and what the sellers “needed” for their house. I understand: just as buyers hit a ceiling and can go no higher, sellers can have a floor. But my guess is that these sellers may regret their choice because, while my buyers will just move on and find another house, the sellers will still have a house they no longer want. For how long? maybe just the weekend, maybe longer.
This month 23 single family houses went to contract, qa distinct improvement from last month’s 12,but a far cry from April 2007’s 74. Of the 23, eight have already sold so I have their actual closing prices. Those eight sold from a low of 41% of the original asking price to a high of 90% (37 Andrews farm Road, if you’re interested). Average: 69% of original asking price. And, while I can’t tell the final price for those houses under contract, every single one of them sold for less than ask and many of them were way, way off their original price before they found a buyer.
So our happy home seller will pass up a definite sale now in the hope of achieving 6.8% more down the road. He may get that – the statistics suggest otherwise.