I read this great post this morning about sellers and the grieving process. I totally see the similarities between a seller accepting the realities of today's real estate market and the grieving process.
I can also see it in a buyer as well.
Stage 1 - Denial
A buyer reads about how prices have declined over the last few years and makes the decision to purchase a home. So he sits down and makes out a wish list and figures a budget for a purchase. He wants a 4 bedroom, 3 bathroom, newer, in a great part of town with great schools. His budget is $300,000. He either sits down with a Realtor or searches the internet to look for homes. Unfortunately, what he discovers is that the home he is envisioning in his head is $450,000. "These sellers are crazy! This can't be."
Stage 2 - Angry
At this point anger of some form sets in. "What do you mean I can't get the house I want for $300,000? It is a buyers market and I really don't like the homes that I can get for $300,000. The one I really want is selling between $400,000 - $500,000!"
Stage 3 - Bargaining
When they get past the anger the buyer will look for a way to bargain. "Maybe I can find a foreclosure or short sale." At this point he asks his Realtor or tries to come up with a solution of getting that $450,000 Sarasota house for $300,000.
Stage 4 - Depression
When it becomes clear that the real estate market is efficient and bargaining isn't work a little depression may set in. "I really wanted that home over on 123 Main Street but it sold for $425,000 and I am only willing to spend $300,000. This stinks!"
Stage 5 - Acceptance
This is the final stage where they accept the market realities. They now realize that they have to make compromises on the house that they are going to buy. Instead of getting a 4 bedroom, 3 bathroom, newer home in a great part of town they may have to settle for a 3 bedroom, 2 bathroom, older home in a great part of town. This is where they start to justify and appreciate the homes in their price range.
The length of this proces could be 5 minutes or 5 years. It depends on the buyer and it happens in all price ranges. I have seen it in multi-million dollar home buyers all the way to the first time home buyer.
Have you noticed this before?