Are You A Frustrated Real Estate Buyer? Here's Why

First of all, what is a “comp?”

It is a comparable property to the one at which you are looking or on which you’re considering offering. It could be an active list of available properties, but more accurately we are usually speaking of comparable SALES.

Market value is just that – “market” value. It is the value that qualified buyers place on properties that are exposed fairly to the market place. Appraisers don’t determine value and Realtors don’t determine value. Buyers determine value. As I have said before, we are in a real estate shift once again. There are more buyers than there are good homes to buy. The result will be multiple offers and rising prices.

The above conditions produce frustrated buyers for sure. Both agents and active buyers know that any homes in Laguna Niguel under $700,000 are moving quickly if they are priced fairly and show well. Many buyers are making offers and not getting the house.

What is more frustrating is that many times there will be no comparable sales. As you have probably heard, the inventory of available homes in Laguna Niguel is down below what it was in January (which is traditionally a low time). There are no comparable sales because the market was slow and buyers were wary.

Now buyers want to buy and take advantage of the low prices and great interest rates but they can’t find their dream home. The result is they are afraid not to offer full price on newly listed properties. If the buyer has all cash then there is no bank appraisal issue and a new comp is established. If it is financed but with enough down, and if the property received multiple offers, then the appraiser must conclude that this is the new market value.

Once again buyers will determine value. If your home is not getting offers there is a reason and you need to speak candidly to your Realtor.